Firms may react to a payroll tax by
A. shifting to more capital intensive techniques.
B. increasing workers' wages.
C. increasing their output.
D. substituting labor for capital.
Answer: A
You might also like to view...
Explain why underproduction or overproduction of a good results in efficiency losses
Please provide the best answer for the statement.
The price elasticity of supply is a measure of the responsiveness of:
A. the change in price to the quantity supplied. B. the suppliers with respect to the change in price. C. the quantity supplied to the change in income. D. the quantity supplied to the changes in price.
To minimize total costs for a particular rate of output, a firm will equate
A. the average cost of each factor. B. the marginal product per dollar spent on each factor. C. the marginal revenue product and variable marginal revenue for each factor. D. the marginal revenue of each factor.
If you are estimating your total expenses for school next semester, you are using money primarily as:
A. a medium of exchange. B. a store of value. C. a unit of account. D. an economic investment.