The payroll tax and the income tax differ in that:
A. the employer pays the payroll tax, and the individual pays the income tax.
B. the payroll tax is tied directly to specific programs while the personal income tax goes toward general government revenue.
C. employers have to pay both payroll and corporate income taxes, and individuals only have to pay personal income tax.
D. the employer pays the payroll tax, but the income tax burden is shared between employer and employee.
B. the payroll tax is tied directly to specific programs while the personal income tax goes toward general government revenue.
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What will be an ideal response?
Sarah and David both have linear demand curves for lemonade. Sarah's demand is more elastic than David's. At the current price of $0.50 per glass, they both choose to buy 5 glasses. A change in the price of lemonade to $0.75 per glass will
A) decrease Sarah's consumer surplus more than David's. B) decrease David's consumer surplus more than Sarah's. C) increase Sarah's consumer surplus more than David's. D) increase David's consumer surplus more than Sarah's.
Individuals cannot buy unemployment insurance for themselves. The most likely reason for this is
a. moral hazard. b. imperfect information. c. a culture of poverty. d. the free-rider problem.
"Net revenue" is maximized by selling every unit for until marginal revenue
What will be an ideal response?