When the Supply Curve of Labor Is Perfectly Inelastic and a Social

question 83

Multiple Choice

When the supply curve of labor is perfectly inelastic and a social security tax is collected partly from employers and partly from employees,the burden of the tax is:

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

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Definitions:

Hyperconsumption

Describes an excessive and unsustainable level of consumption that surpasses what is necessary for a comfortable lifestyle, often driven by consumerism and materialism.

Alienation

A condition in social relationships reflected by a decrease in the sense of personal identification with the products of one's work or disenchantment with societal norms.

Mode of Production

describes the varied ways that societies gather or produce the means of their subsistence, focusing on the combination of productive forces and relations of production.

Capitalism

An economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.