Which of the Following Is True About a Payroll Tax

question 96

Multiple Choice

Which of the following is true about a payroll tax?

• A)It shifts the labor supply curve to the right.
• B)It reduces the net wage to employees.
• C)It results in more workers being employed.
• D)It reduces the nominal cost of labor.

---

Definitions:

Conversion

The act of changing something into a different form or entity, often used in marketing to refer to turning prospects into customers.

Cash-Basis Accounting

An accounting method where revenues and expenses are recorded when cash is received or paid, rather than when earned or incurred.

Accrual-Basis

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is received or paid.

Liquidity-Basis

A measurement or approach focusing on how quickly assets can be converted into cash without affecting their value.