1. A payrol tax Is born entirely by workers if the supply of labor is perfectly inelastic. True or false? Explain 2. When the tax rate on wages falls (so that the take home wage or effective wage increase), the busget line rotates out along the consumption axis. True or false? Explain

Principles of Macroeconomics (MindTap Course List)
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Author:N. Gregory Mankiw
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Chapter8: Application: The Costs Of Taxation
Section: Chapter Questions
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1. A payrol tax Is born entirely by workers if
the supply of labor is perfectly inelastic.
True or false? Explain
2. When the tax rate on wages falls (so
that the take home wage or effective wage
increase), the busget line rotates out along
the consumption axis. True or false?
Explain
Transcribed Image Text:1. A payrol tax Is born entirely by workers if the supply of labor is perfectly inelastic. True or false? Explain 2. When the tax rate on wages falls (so that the take home wage or effective wage increase), the busget line rotates out along the consumption axis. True or false? Explain
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