Lawmakers designed the burden of the FICA payroll tax to be split evenly between workers and firms. Labor economists believe that
a. lawmakers may have actually achieved their goal because statistics show that the tax burden is currently equally divided.
b. the tax raises too little revenue for the government, so it should be eliminated.
c. firms bear most of the burden of the tax.
d. workers bear most of the burden of the tax.
d
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A risk-averse person's expected utility function is
A) decreasing. B) convex. C) concave. D) a straight line.
Unemployment rates in many continental European countries have been consistently higher compared to the United States. The difference is mostly
a. due to differing monetary policies b. cyclical unemployment c. frictional unemployment d. structural unemployment e. seasonal unemployment
In macroeconomic analysis, a transfer payment is considered a
a. positive tax. b. fixed tax. c. negative tax. d. variable tax.
If education produces positive externalities, we would expect
a. the government to tax education. b. the government to subsidize education. c. people to realize the benefits, which would increase the demand for education. d. colleges to relax admission requirements.