Asked by
Geovanny Ortiz
on Nov 17, 2024
Verified
Most labor economists believe that the supply of labor is
A) less elastic than the demand, and, therefore, firms bear most of the burden of the payroll tax.
B) less elastic than the demand, and, therefore, workers bear most of the burden of the payroll tax.
C) more elastic than the demand, and, therefore, workers bear most of the burden of the payroll tax.
D) more elastic than the demand, and, therefore, firms bear most of the burden of the payroll tax.
Labor Economists
Labor economists study the dynamics of workers, jobs, and the markets in which they operate, to understand the factors affecting labor supply and demand.
Payroll Tax
Contributions imposed on either the workforce or the employers, determined by a percentage of the payrolls distributed by companies to their staff.
- Elucidate the notion of payroll taxes and their distribution between employers and employees.
- Understand the impact of supply and demand elasticity on tax burdens.
Verified Answer
PJ
Learning Objectives
- Elucidate the notion of payroll taxes and their distribution between employers and employees.
- Understand the impact of supply and demand elasticity on tax burdens.