Which of the Following Statements About a Payroll Tax Is

question 9

Multiple Choice

Which of the following statements about a payroll tax is true?

• A) It reduces the quantity demanded of workers if the supply of labour is perfectly inelastic.
• B) It generally reduces the quantity demanded of workers.
• C) It is borne entirely by employers if demand is perfectly inelastic.
• D) It is borne entirely by workers if the supply of labour is perfectly elastic.
• E) It is shared equally between workers and employers.

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