The Incidence of a Payroll Tax

question 7

Multiple Choice

The incidence of a payroll tax

• A)depends upon whether it is levied on the employer or employee.
• B)is the same whether it is levied on the employer or the employee.
• C)is more heavily on the employee as demand for labor becomes more elastic.
• D)is more heavily on the employer as demand for labor becomes less elastic.

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Definitions:

Contingency Approach

A theory that suggests the best way to manage an organization or make decisions depends on specific circumstances or external factors, rather than a one-size-fits-all method.

Organizational Design

The process of structuring a company's roles, responsibilities, and systems to effectively and efficiently achieve its goals and adhere to its values.

Environmental Uncertainty

The unpredictable nature of external forces that can influence an organization's operations.

Structural Characteristics

The identifiable attributes, components, or configuration that define the makeup or construction of a system, organization, or object.