If labor supply is perfectly inelastic, the imposition of a payroll tax legislated to be paid by firms will do all of the following except
A. reduce the wage rate by exactly the amount of the tax.
B. generate tax revenue paid to the government.
C. leave employment levels unchanged.
D. reduce total output.
E. leave firm profits unchanged.
Answer: D
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Human capital refers to the
A. number of workers available in the economy. B. tools and equipment available to workers. C. education, training, and skills of workers. D. amount of financing available to start-up firms.
The graph shows costs and benefits of a mosquito control program, which is a public good:
a) What is the quantity of spraying that achieves efficiency? b) What is the political equilibrium if voters are well informed?
In the exporting country, an export subsidy will
A) help consumers and raise the overall economic welfare of the exporting country. B) hurt consumers but raise the overall economic welfare of the exporting country. C) hurt consumers and lower the overall economic welfare of the exporting country. D) help consumers but lower economic welfare of the exporting country. E) help consumers and have no effect on the economic welfare of the exporting country.
Government produces higher education in the form of state universities and community colleges and sells the higher education at below-market prices, even though there is a flourishing private market for the good
Indicate whether the statement is true or false