The Social Security Tax,like Any Other Tax,is Shared by Employers

question 23

Multiple Choice

The social security tax,like any other tax,is shared by employers and employees based on elasticities of demand and supply.If the wage elasticity of demand for labor is zero and the wage elasticity of supply for labor is positive:

• A)most of the tax will be paid by the employer.
• B)most of the tax will be paid by the employee.
• C)all of the tax will be paid by the employer.
• D)all of the tax will be paid by the employee.
• E)the tax is split evenly between the employer and employee.

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Definitions:

Homogeneity

The quality or state of being all the same or all of the same kind.

Social Inequality

The unequal distribution of tangible or intangible goods or services to individuals or groups in society.

Comparable Education

An education system, standard, or achievement that is similar in quality, scope, and value to another, enabling reasonable comparison.

Social Norms

Shared, unwritten rules that govern the behavior of members within a society or group, based on accepted and expected practices and conduct.