- 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?

Question

Quizplus · Accepted Answer

The correct answer is A because the payroll tax is a tax on employers, and the employers will pass on some of the tax burden to the workers in the form of lower wages. In this case, the employers will pay $2 per hour of the tax burden.

- Refer to the Labor Market in Figure 33