(Figure: Wage Subsidy) Refer to the Figure

question 38

Multiple Choice

(Figure: Wage Subsidy) Refer to the figure. How manyadditional workers have been hired as a result of the wagesubsidy?

• A)150
• B)180
• C)30
• D)No additional workers have been hired as a result of the wage subsidy.

---

Definitions:

Inelastic Demand

The case in which the price elasticity of demand is less than 1.

FICA

FICA stands for the Federal Insurance Contributions Act and is a United States federal payroll tax that funds Social Security and Medicare programs.

Payroll Tax

A tax on the earnings an employer pays to an employee.

Burden Of The Tax

The burden of the tax refers to the impact of a tax on the economic welfare of stakeholders, indicating who ultimately bears the cost of the tax.