As a result of an increase in the payroll tax that employers must pay on their employees? wages, employers reduce the starting wage for new employees. This is an example of
A. tax incidence.
B. tax shifting.
C. a regressive tax.
D. tax avoidance.
Answer: B
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Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for bicycle helmets. Which panel best describes what happens in this market if there is a substantial increase in the price of bicycles?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
What is meant by the demographic transition? What are the differences in the demographic transition between the current developed economies and developing countries?
What will be an ideal response?
The concept that market forces in the macroeconomy can remedy a recession is referred to as:
Keynesianism: the use of expansive fiscal and monetary policies to resolve a recession. The self-correcting mechanism The consumption function The paradox of thrift
Recall the Application about the benefits generated when one country gathers information on global weather to answer the following question(s).Recall the Application. When the U.S. acquires and then shares weather data with organizations in other countries:
A. both the U.S. economy and the economies of other countries benefit. B. the U.S. does not benefit and other countries free ride. C. the information is excludable and rival. D. the information is incomplete because no country can monitor oceans outside its own borders.