Consider a Social Security Tax on Workers Versus a Social

question 51

Multiple Choice

Consider a Social Security tax on workers versus a Social Security tax on employers.In comparing the outcomes of each type of tax,we see that

• A) workers receive a higher take-home wage when the tax is imposed on employers than when the tax is imposed on workers.
• B) workers receive the same take-home wage when the tax is imposed on workers and when the tax is imposed on employers.
• C) employers pay a lower total wage when the tax is imposed on workers.
• D) employment decreases by more when the tax is imposed on employers than when the tax is imposed on workers.
• E) employment decreases by more when the tax is imposed on workers than when the tax is imposed on employers.

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Definitions:

Suppliers

Entities that provide goods or services to another entity, typically within a supply chain context.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level at a given period.

Demand Curve

Graph of the amount of a product that buyers will purchase at different prices.

Microeconomics

Study of small economic units, such as individual consumers, families, and businesses.