Rhode Island Has Enacted a Substantial Increase in the Tax

question 145

Multiple Choice

Rhode Island has enacted a substantial increase in the tax on employers that finances the workman's compensation system.For some employers, the tax is about $25 per $100 paid in wages.Employers claim they cannot afford to pay the tax.Under which of the following conditions will the actual burden of the tax fall on employers?

• A)The employers' demand for labor is perfectly elastic.
• B)The supply of labor is perfectly inelastic.
• C)The employers' demand for labor is perfectly inelastic.
• D)The demand for the good they produce must be perfectly inelastic.

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Definitions:

Personal Selling Process

A direct method of selling in which sales representatives personally meet with potential customers to present products or services, aiming to engage and convert them into buyers.

Six Stages

Refers to a structured process or framework divided into six distinct phases, often used in project management or product development.

Sales Activities

Actions undertaken by sales staff, including prospecting, networking, negotiating, and closing deals, to generate revenue.

Team Selling

A sales approach in which a group of salespeople work together to secure a sale, often used to address complex needs of large clients by leveraging the diverse skills of team members.