The Mayor of Workerville Proposes a Local Payroll Tax to Fund

question 66

Multiple Choice

The mayor of Workerville proposes a local payroll tax to fund a new water park for the city.The mayor proposes to collect half the tax from workers and half the tax from firms.The mayor will be able to successfully divide the burden of the tax equally if the

• A)demand for labor is more elastic than the supply of labor.
• B)supply of labor is more elastic than the demand for labor.
• C)demand for labor and supply of labor are equally elastic.
• D)It is not possible for the tax burden to fall equally on firms and workers.

---

Definitions:

Barbarian Invaders

Groups or tribes that invaded the territories of the Roman Empire during its decline, contributing to its fall.

Visigoths

A Germanic tribe that played a significant role in the fall of the Western Roman Empire and established a kingdom in what is now Spain and Portugal.

Ebbo Gospels

An illuminated Gospel book from the 9th century, notable for its expressive and emotional style of art, associated with the Carolingian Renaissance.

Utrecht Psalter

A highly important and richly illustrated Carolingian manuscript from the 9th century, known for its unique pen and ink drawings.