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:

Intense

Something that is extremely strong or severe in degree or magnitude.

Panic Attacks

Sudden episodes of intense fear or anxiety that trigger severe physical reactions when there is no real danger or apparent cause.

Specific Phobia

An intense, irrational fear of or aversion to a particular object or situation.

Terrified

Feeling extreme fear or terror.