Refer to the Labor Market in Figure 33

question 138

Multiple Choice

Refer to the labor market in Figure 33.5. Suppose the government imposes a payroll tax on employers. How much of the tax burden is passed on to workers?

• A) $10 - $8 = $2 per hour.
• B) $10 - $7 = $3 per hour.
• C) $8 - $7 = $1 per hour.
• D) $7 per hour.