Asked by Lissette Castaneda on Jun 18, 2024
Verified
Refer to Figure 19.1. After firms can respond to the payroll tax, employment will be
A) 500.
B) 650.
C) 700.
D) 800.
Employment
Employment is a contractual relationship between an employer and an employee where the employee provides labor or services in exchange for compensation.
Payroll Tax
Contributions demanded from employers or their staff, often pegged to a percentage of the paychecks disbursed to employees.
- Identify the changes in employment levels resulting from the imposition of a payroll tax.
Verified Answer
SA
sally alabdaliJun 20, 2024
Final Answer :
C
Explanation :
Without the specific details of Figure 19.1, the general principle in economics is that a payroll tax can affect the employment level by increasing the cost of labor for employers. The correct answer typically depends on the shifts in supply and demand for labor due to the tax. Assuming the figure illustrates a standard model where a payroll tax decreases employment from an initial equilibrium, the correct choice would be the one that shows a reduced level of employment. However, without seeing the figure, it's impossible to directly correlate the numbers to the specific impact. The choice provided here as correct (C) is based on a common understanding of economic principles rather than the specific details of the figure.
Learning Objectives
- Identify the changes in employment levels resulting from the imposition of a payroll tax.