The employer's share of the Social Security and Medicare components of the payroll tax has increased,from 6.13% in 1980 to its current rate of 7.65%.Because employers pay no payroll tax on many fringe benefits,this change in tax rates has effectively:
A)reduced the "price" of fringe benefits,increasing the slope of the wage-fringe isoprofit line
B)increased the "price" of fringe benefits,increasing the slope of the wage-fringe isoprofit line
C)reduced the "price" of fringe benefits,reducing the slope of the wage-fringe isoprofit line
D)increased the "price" of fringe benefits,reducing the slope of the wage-fringe isoprofit line

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The Answer of The employer's share of the Social Security and Medicare components of the payroll tax has increased,from 6.13% in 1980 to its current rate of 7.65%.Because employers pay no payroll tax on many fringe benefits,this change in tax rates has effectively:
A)reduced the "price" of fringe benefits,increasing the slope of the wage-fringe isoprofit line
B)increased the "price" of fringe benefits,increasing the slope of the wage-fringe isoprofit line
C)reduced the "price" of fringe benefits,reducing the slope of the wage-fringe isoprofit line
D)increased the "price" of fringe benefits,reducing the slope of the wage-fringe isoprofit line

The Employer's Share of the Social Security and Medicare Components