Refer to the labor market in Figure 33.5. Suppose that the government imposes a payroll tax on employers in this market. How much will the government collect in tax receipts for every worker hired?

A. $10 - $8 = $2 per hour.
B. $10 - $7 = $3 per hour.
C. $7 per hour.
D. $8 - $7 = $1 per hour.

Answer: B

Economics

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Clarissa notices that her satellite TV signal becomes scrambled whenever there is a major thunderstorm in her area. She concludes that the scrambled satellite signal must be causing the severe thunderstorms. Clarissa is

A. likely correct that there is causation, but the causation is more likely running in the opposite direction in that the severe thunderstorms are the cause of the scrambled satellite signal. B. probably misguided in that there is no apparent correlation or causation in this situation. C. very probably correct in her conclusion that the scrambled satellite is the cause of the thunderstorms. D. definitely confusing correlation with causation.

Economics

Resource price differentials that trigger the reallocation of resources so as to equalize payments for similar resources are known as

a. permanent differentials b. trigger price differentials c. reallocation differentials d. equal differentials e. temporary differentials

Economics