When the labor supply is very inelastic, the payroll tax is
A. split fairly evenly between the employer and the employee.
B. borne mostly by the employee.
C. borne mostly by the employer.
D. borne entirely by the employer.
Answer: B
You might also like to view...
Refer to Figure 13-8. What is the profit-maximizing output level?
A) 22 cases B) 24 cases C) 30 cases D) 38 cases
A monopoly firm is a price
a. taker and has no supply curve. b. maker and has no supply curve c. taker and has an upward-sloping supply curve. d. maker and has an upward-sloping supply curve.
The concept of comparative advantage is based upon:
A) absolute labor productivity. B) relative labor costs. C) dollar prices of labor. D) relative opportunity costs.
Select the normative statement that completes the sentence: If wages rise more rapidly than productivity:
A. profits will fall. B. workers will earn 3/4 of GDP. C. the rate of inflation increases. D. policymakers should impose a wage ceiling.