Employers will bear the full burden of the payroll tax if labor supply is
A. perfectly inelastic.
B. upward sloping.
C. backward bending.
D. perfectly elastic.
Answer: D
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There is no single market structure where firms offer either differentiated or identical products
Indicate whether the statement is true or false
A market structure in which many firms compete by making similar but slightly different products is called
A) perfect competition. B) monopolistic competition. C) oligopoly. D) monopoly.
The perfectly competitive firm:
A) makes its profit-maximizing decision only on the basis of output. B) faces a downward-sloping demand function. C) can influence market price only in a downward direction. D) cannot earn any economic profits because it faces a horizontal demand curve.
Screening and signaling in the labor market are inefficient
A) unless college costs are relatively low. B) unless they result in a better job match. C) because the benefits are spread out over many firms. D) because they raise the wage paid to all workers.