-The Above Figure Shows the Demand and Supply Curves for High-Skilled

question 73

Multiple Choice

-The above figure shows the demand and supply curves for high-skilled and low-skilled labor. The wage differential between high-skilled and low-skilled labor is

• A) $4.00.
• B) $5.00.
• C) $6.00.
• D) $7.00.

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Definitions:

Payroll Tax

Obligations enforced on either the workforce or the employers, generally estimated as a share of the compensation employers offer to their staff.

Proportional Taxes

Taxes that are imposed at a constant rate regardless of the income level of the taxpayer.

Regressive Effect

A situation where a tax or fiscal policy disproportionately affects lower-income individuals, making them pay a higher percentage of their income than wealthier individuals.

Economic Role

The function or position held by an entity or individual within an economic system, influencing the allocation of resources and creation of goods and services.