Taxes on labor have the effect of encouraging Group of answer choices workers to work more hours. the elderly to postpone retirement. second earners within a family to take a job. unscrupulous people to take part in the underground economy.

unscrupulous people to take part in the underground economy.

Explanation:

Taxes are levies that a government collects from individuals and businesses. It is compulsory and is used to raise revenue from services, goods, or income.

When income earned by labour is taxed it reduces the the moral of employees to work and earn legally.

Some may now turn to the underground economy to earn more money.

The underground economy is made up of illegal activities that fail to meet reporting standards of the government. That is either transactions are made on goods that are illegal or income earned is not subject to government taxation.

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