Multiple Choice
Suppose there is a payroll tax placed on firms.If labor supply is perfectly elastic,then
A) firms and workers will split the payroll tax 50-50.
B) workers will bear 75% of the tax burden.
C) workers will bear 100% of the tax burden.
D) firms will bear 100% of the tax burden.
E) firms will bear 75% of the tax burden.
Correct Answer:
Verified
Correct Answer:
Verified
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