When the Supply Curve of Labor Is Perfectly Inelastic the Burden

question 29

Multiple Choice

When the supply curve of labor is perfectly inelastic the burden of a social security tax is:

• A)borne partly by the employers and partly by employees.
• B)borne partly by the employers only if the demand for labor is elastic.
• C)entirely borne by the employees.
• D)entirely borne by the employers.

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Definitions:

Tickler File

A reminder system or method used for tracking deadlines and important dates, often organized by date.

Unpaid Vouchers

Open or outstanding vouchers representing liabilities for goods or services received but not yet paid for by the company.

Voucher Number

A unique identification code assigned to each transaction or invoice in an accounting system.

Vouchers Payable

An accounting term that refers to accounts payable obligations for which vouchers have been created but not yet paid.