As a Result of an Increase in the Payroll Tax

question 40

Multiple Choice

As a result of an increase in the payroll tax that employers must pay on their employeesʹ wages, employers reduce the starting wage for new employees. This is an example of

• A) tax shifting.
• B) tax incidence.
• C) a regressive tax.
• D) tax avoidance.

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Definitions:

Inequality

The state of being unequal in status, rights, or opportunities, often leading to unfair treatment or disparities among individuals or groups.

Normative Need

Refers to what is considered a standard or essential requirement in a society to ensure the well-being and functioning of its members.

Drinking Water

Water that is safe for human consumption, free from contaminants and harmful bacteria.

Water Resources

The natural sources of water available for human use, including lakes, rivers, aquifers, and rainwater, crucial for survival, agriculture, and industry.