Employers withhold several taxes from employees ' paychecks, one of which is FICA. Congress requires employers to pay half of the FICA tax and workers to pay the other half
Does this mean that the burden of the FICA tax falls evenly on employers and employees? Briefly explain.
Most economists believe that even though employers and employees each pay half of the FICA tax, the burden of the tax falls almost entirely on employees. The forces of demand and supply working in the labor market determine the incidence of the tax, not Congress, so even though the tax is paid evenly by employers and employees, this does not mean that the burden is shared equally.
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Arnie's Airlines decides to offer different fares to different customers for the same tri
A) wants to convert consumer surplus to deadweight loss. B) wants to help some buyers with lower fares. C) has different costs for the same flight. D) wants to convert consumer surplus to economic profit. E) wants to convert producer surplus to consumer surplus.
Special interest legislation generally leads to an increase in social welfare
a. True b. False
A main trading partner with the U.S. is:
A. Saudi Arabia. B. South Africa. C. Russia. D. Mexico.
Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation. B. low economic growth and high inflation. C. high economic growth and low inflation. D. low economic growth and low inflation.