Question 1
Refer to the information provided in Figure 19.1 below to answer the question(s) that follow.
Refer to Figure 19.1. After firms can respond to the payroll tax, the per-hour wage that workers take home will ________ compared to the original equilibrium wage.
◦ increase by $5
◦ increase by $3
◦ decrease by $5
◦ decrease by $2
Question 2
Refer to the information provided in Figure 19.1 below to answer the question(s) that follow.
Refer to Figure 19.1. After firms can respond to the payroll tax, employment will have
◦ increased by 50.
◦ increased by 150.
◦ decreased by 100.
◦ decreased by 200.
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