By law, workers pay half the Social Security tax and employers pay the other half. However, the price of labor (wages) does not adjust very quickly. If the government wanted to temporarily create a shortage of labor (or combat a surplus of labor) , what should it do?
A) Move the whole tax onto workers (suppliers of labor) .
B) Move the whole tax onto employers (demanders of labor) .
C) Neither, because this change would have a long-run effect on who pays the Social Security tax.
D) Increase the tax on both parties.
Correct Answer:
Verified
Q20: Use the following to answer questions:
Figure: Tax
Q21: A tax imposed on sellers will:
A) shift
Q22: Use the following to answer questions:
Figure: Supply
Q23: With a tax on producers, demand:
A) increases.
B)
Q24: Use the following to answer questions:
Figure: Tax
Q26: Use the following to answer questions:
Figure: Supply
Q27: With a tax on consumers, demand:
A) increases.
B)
Q28: By law, workers pay half the Social
Q29: Which of the following is correct concerning
Q30: With a tax on producers, supply:
A) increases.
B)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents