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If Corporations Bear at Least Some of the Tax Burden

Question 27

Multiple Choice

If corporations bear at least some of the tax burden when profits are taxed,this means that workers are likely to bear some of the burden through:


A) higher wages if labor supply is not perfectly elastic.
B) higher wages if labor supply is perfectly elastic.
C) lower wages if labor supply is not perfectly elastic.
D) lower wages if labor supply is perfectly elastic.

Correct Answer:

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