Payroll tax puts a wedge between the wages firms pay and the wages workers earn due to ______.
a. which party the tax is levied against
b. the inelasticity of supply relative to demand
c. whether the supply or demand curve is shifted
d. the fact that firms essentially pay the tax twice
b. the inelasticity of supply relative to demand
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Ramona decides to spend two hours taking a nap rather than attending her classes. Her opportunity cost of napping is
a. the value of the knowledge she would have received had she attended class. b. the $24 she could have earned if she had worked at her job for those two hours. c. the value of her nap minus the value of attending class. d. nothing, since she valued sleep more than attendance at class.
Saturday afternoon you can either attend a street festival, work and earn $100, or study for your midterm exam. You flip a coin between the street festival and studying, but did not really consider working. The coin flip determined that you would stay home and study. The opportunity cost of the time spent studying includes:
A. The time you spent deciding upon using a coin flip to determine your Saturday afternoon activity. B. earning a high score on your midterm. C. the loss of $100 worth of wages and going to the street festival. D. the benefit that could have been received at the street festival.