The Demand for Unskilled Workers Is Highly Price Elastic

question 71

Multiple Choice

The demand for unskilled workers is highly price elastic.This means that a tax imposed partly on unskilled workers and partly on their employers:

• A)will be paid primarily by the employers.
• B)will be paid primarily by the employees.
• C)will be equally paid by employers and employees.
• D)will be totally passed on to consumers.
• E)will be paid only by the employers.

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Definitions:

Interest Rate

The percentage at which interest is charged or paid on borrowed or saved money, typically expressed as an annual percentage.

Expected Cash Flows

The projected amount of cash that is anticipated to be generated or expended over a certain period in the future.

Present Value

The contemporary valuation of future monetary sums or cash flow chains, determined by a designated rate of return.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1.