Most labor economists believe that the supply of labor is
a. less elastic than the demand, and, therefore, firms bear most of the burden of the payroll tax.
b. less elastic than the demand, and, therefore, workers bear most of the burden of the payroll tax.
c. more elastic than the demand, and, therefore, workers bear most of the burden of the payroll tax.
d. more elastic than the demand, and, therefore, firms bear most of the burden of the payroll tax.
b
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Because it is a machine, a personal computer should be treated as a fixed input in the typical firm's short-run production function
Indicate whether the statement is true or false
Which of the following sets of goods are most likely to be complementary goods?
a. shoes and pizza b. automobiles and computers c. baseballs and baseball gloves d. football tickets and baseball tickets e. Dell and Gateway computers
The resources that a taxpayer devotes to complying with the tax laws are a type of
a. marginal tax. b. administrative burden. c. deadweight loss. d. Both b and c are correct.
A standard efficiency wage model pays workers higher wages in order to increase worker efficiency. As a result, firm profits increase and there is a pool of involuntarily unemployed workers. This equilibrium comes about in part because
A. workers are unaware of the pool of unemployed workers as long as they keep their job. B. workers will do anything to be paid a higher wage. C. workers are less likely to shirk when there is a pool of unemployed workers who are willing to take their job. D. the firm agrees to not replace labor with capital. E. the firm pays workers according to a tournament.