When the government imposes a payroll tax on employers (and not on workers), which of the following effects will not come about?
A. Firms and workers typically both bear a portion of the tax.
B. Employment falls.
C. The costs of hiring increase.
D. Real wages will remain fixed if the labor market is competitive.
E. The labor demand curve shifts down.
Answer: D
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If a meat packing plant has 30 employees and each employee has a 1 in 90 chance of getting injured on the job, then on average, one employee will get injured on the job every
A) 120 days. B) 1 year. C) 3 years. D) 9 years.
Which of the following is true about outsourcing and labor migration:
A. Unrestricted out-sourcing and unrestricted labor migration result in the same wage outcomes in tradable goods markets (as long as there are no barriers to trade). B. Under outsourcing, pressures for wage equalization arise from shifts in labor demand curves. C. Under labor migration, pressures for wage equalization arise from shifts in labor supply curves. D. Both (a) and (c) E. Both (b) and (c) F. Both (a) and (b) G. All of the above H. None of the above
If K-12 education is determined to be an inframarginal positive externality, this means that K-12 education is being underproduced
a. True b. False
A decrease in the average price level leads to a decrease in the purchasing power of wealth
a. True b. False Indicate whether the statement is true or false