Employee Subsidies Will Be Most Effective at Raising the Effective

question 24

Multiple Choice

Employee subsidies will be most effective at raising the effective wage of the poor when

• A) demand for labor is elastic.
• B) supply for labor is inelastic.
• C) both A and B
• D) neither A nor B

---

Definitions:

Income Tax Liability

The total amount of income tax that an individual or corporation owes to tax authorities.

Income Tax Expense

Income tax expense is the amount of expense that a business recognizes in a given accounting period for the taxes associated with its taxable income.

Journal Entry

A record of a financial transaction in the accounting books of a business or organization.

DR (Debit)

DR, or Debit, represents the left side of a general ledger account and is used to record increases in assets or expenses and decreases in liabilities, equity, and income.