15. Suppose the wage of unskilled workers is equal to the minimum wage. If a tax...

15. Suppose the wage of unskilled workers is equal to the minimum wage. If a tax on labor is levied on _____, the presence of the minimum wage _____.

a. workers; does not affect the tax burden of workers b. workers; reduces the tax burden of workers

c. firms; reduces the tax burden of firms

d. firms; does not affect the tax burden of firms

Expert Solution

Ans no 15

a) workers; does not affect the tax burden of workers

Explanation: Suppose the wage of unskilled workers is equal to the minimum wage. If a tax on labor is levied on workers, the presence of the minimum wage does not affect the tax burden of workers.

Rahul Sunny answered 2 years ago

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