What do most empirical studies of labor supply in the United States conclude concerning the elasticity of labor supply and what implication does this have with respect to who bears the burden of the payroll tax?
What will be an ideal response?
Empirical studies of labor supply behavior in the United States suggest that for most of the workforce, the elasticity of labor supply is close to zero. Therefore, most of the payroll tax in the United States is probably borne by workers.
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When Audrina raised the price of her homemade cookies, her total revenue increased. This suggests that the demand for Audrina's cookies is elastic
Indicate whether the statement is true or false
If an economy were experiencing a high rate of unemployment as the result of weak aggregate demand, a Keynesian economist would be most likely to recommend
a. a reduction in taxes coupled with a reduction in government expenditures of equal size. b. an increase in government expenditures coupled with an increase in taxes of equal size. c. a reduction in taxes, without any offsetting reduction in government expenditures. d. maintenance of a balanced budget.
Which one of the following is concerned with industrial regulation, as distinct from social regulation?
A. Occupational Safety and Health Administration. B. Consumer Products Safety Commission. C. Federal Communications Commission. D. Environmental Protection Agency.
Historic data indicate that there is usually a ________ relationship between trade deficits and federal government budget deficits.
A. positive B. zero C. fluctuating D. negative