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Refer to the Labor Market in Figure 33

Question 127

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. 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.

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