In a Labor Market in Which Demand Is Inelastic (But

question 38

Multiple Choice

In a labor market in which demand is inelastic (but not perfectly inelastic) and supply is elastic (but not perfectly elastic) ,who bears a tax levied on the firms?

• A) only the workers
• B) only the firms
• C) both the workers and the firms,although the workers bear more of the tax
• D) both the workers and the firms,although the firms bear more of the tax

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Definitions:

Karl Marx

A 19th-century philosopher, economist, and revolutionary socialist known for his critique of capitalism and development of historical materialism.

Opium of the People

A term coined by Karl Marx, referring to religion as something that provides comfort to the oppressed masses with an illusion of happiness, pacifying them and detracting from actual worldly sufferings.

Transcendent

Going beyond the limits of ordinary experience, this term refers to something that is above and beyond the material universe.

Immanent

Existing or operating within; inherent.