A Key Lesson from the Payroll Tax Is That the

question 63

Multiple Choice

A key lesson from the payroll tax is that the

• A)tax is a tax solely on workers.
• B)tax is a tax solely on firms that hire workers.
• C)tax eliminates any wedge that might exist between the wage that firms pay and the wage that workers receive.
• D)true burden of a tax cannot be legislated.

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Definitions:

Political System

The structure of government, including institutions and processes, that governs a society.

Population Growth

The increase in the number of individuals in a population, influenced by birth rates, mortality rates, and migration patterns.

Demographic Transition Model

is a theory that describes the changes in birth rates, death rates, and population growth as a society progresses from a pre-industrial to an industrialized economic system.