Firms May React to a Payroll Tax by

question 35

Multiple Choice

Firms may react to a payroll tax by

• A) substituting labor for capital.
• B) reducing their output.
• C) shifting to less capital intensive techniques.
• D) hiring more labor.

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Definitions:

Estimating Value

The process of determining an item's worth or the fair market value of assets, often used in finance and real estate.

Inventory

The total amount of goods and materials held by a business for the purpose of resale, manufacturing, or repair.