What is not likely a source of deadweight loss? a) A payroll tax. b) A legislated...

What is not likely a source of deadweight loss?

a) A payroll tax.

b) A legislated minimum wage.

c) A non-competitive labor market.

d) An unemployment person who is willing to work at the market rate.

e) Employer-provided health care insurance.

Solutions

Expert Solution

Deadweight loss caused by an insufficient allocation of resources. Price ceiling such as rent control, price control, price floor such as minimum wage, taxation.

But when an unemployment person willing to work at market rate, there will no excess supply or demand which can create DWL.

Option d is correct.

Rahul Sunny answered 1 year ago

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