Firms May React to a Payroll Tax by

question 116

Multiple Choice

Firms may react to a payroll tax by

• A) substituting labor for capital.
• B) increasing their output.
• C) shifting to more capital intensive techniques.
• D) increasing workers' wages.

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Definitions:

Allport

Gordon Allport, a psychologist known for his contributions to personality psychology and his theory on the nature of prejudice.

Collective Conscious

The set of shared beliefs, ideas, and moral attitudes which operate as a unifying force within society; often referred to as the "collective conscience" by sociologist Émile Durkheim.

Hawthorne Effect

The change in behavior exhibited by participants in a study because they know they are being watched.

Overt Observational

The process of openly and visibly watching or monitoring someone or something without concealing the observer's presence.