Author Question: If labor supply is very elastic, the payroll tax is (Read 133 times)

K@ · **on:** Apr 19, 2019

Question 1

Refer to the information provided in Figure 19.1 below to answer the question(s) that follow.

Refer to Figure 19.1. The ________ from this payroll tax are $3,500.

◦ total cost to employers
◦ total wage saving
◦ total cost to workers
◦ total tax collections

Question 2

If labor supply is very elastic, the payroll tax is

◦ borne mostly by the employer.
◦ borne entirely by the employer.
◦ borne mostly by the workers.
◦ split evenly between the employer and the workers.

eliasc0401 · **Reply #1 on:** Apr 19, 2019

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