Refer to the labor market in Figure 33.5. Suppose that the government imposes a payroll tax on employers in this market. How much will the government collect in tax receipts for every worker hired?

A. $10 - $8 = $2 per hour.
B. $10 - $7 = $3 per hour.
C. $7 per hour.
D. $8 - $7 = $1 per hour.


Answer: B

Economics

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