Suppose the Wage of Unskilled Workers Is Equal to the Minimum

question 18

Multiple Choice

Suppose the wage of unskilled workers is equal to the minimum wage.If a tax on labor is levied on _____,the presence of the minimum wage _____.

• A) workers; does not affect the tax burden of workers
• B) workers; reduces the tax burden of workers
• C) firms; reduces the tax burden of firms
• D) firms; does not affect the tax burden of firms.

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