Multiple Choice
Refer to the labor market in Figure 33.5.Suppose that the government imposes a payroll tax on employers in this market.How much of the tax burden will the employers actually pay?
A) $10 - $8 = $2 per hour.
B) $10 - $7 = $3 per hour.
C) $8 - $7 = $1 per hour.
D) None.The employers will pass the entire burden onto the workers.
Correct Answer:
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