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If Labor Supply Is Perfectly Inelastic,the Economic Incidence of the Payroll

Question 43

Multiple Choice

If labor supply is perfectly inelastic,the economic incidence of the payroll tax:


A) is the same as the statutory incidence of the tax
B) is split equally between workers and consumers,because firms pass on their share in the form of higher prices
C) falls entirely on firms
D) falls entirely on workers

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