The social security tax, like any other tax, is shared by employers and employees based on the elasticities of demand and supply. If the wage elasticity of demand for labor is zero and the wage elasticity of supply for labor is positive:
a. most of the tax will be paid by the employer.
b. most of the tax will be paid by the employee.
c. all of the tax will be paid by the employer.
d. all of the tax will be paid by the employee.
e. the tax is split evenly between the employer and employee.
d
Economics
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In the figure above, when production is 3 units with a price of $3, the consumer surplus equals
A) a + b. B) a + b + f + g. C) a + b + f + g + h + l. D) a + b + f + g + h + l + i + m.
Economics
The actual unemployment rate is equal to ________
A) the natural rate of unemployment plus the cyclical rate B) the natural rate of unemployment minus the cyclical rate C) the natural rate of unemployment times the cyclical rate D) the natural rate of unemployment divided by the cyclical rate
Economics