When a Payroll Tax Is Enacted,the Wage Received by Workers

question 193

Multiple Choice

When a payroll tax is enacted,the wage received by workers

• A)falls,and the wage paid by firms rises.
• B)falls,and the wage paid by firms falls.
• C)rises,and the wage paid by firms falls.
• D)rises,and the wage paid by firms rises.

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Definitions:

Efficiency

The degree to which resources are utilized effectively to achieve a goal with minimum waste of time and effort.

Government

The governing body of a nation, state, or community which creates and enforces laws, manages public resources, and regulates societal functions.

Government Intervention

Actions taken by a government to affect or interfere with market activities or uphold laws for economic or social outcomes.

Markets Fail

Occurs when a market economy does not efficiently allocate resources, leading to outcomes like monopolies, public goods issues, or externalities.