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

Solutions

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 1 year ago

Next > < Previous

Related Solutions

In 2012, many unskilled workers in the United States earned the federal minimum wage of $7.25...

In 2012, many unskilled workers in the United States earned the federal minimum wage of $7.25 per hour. By contrast, average earnings in 2012 were about $28.00 per hour, and certain highly skilled professionals, such as doctors and lawyers, earned $140.00 or more per hour. Instructions: In parts a, c, and d, round your answers to 2 decimal places. In part b, enter your answers as whole numbers . a. If we assume that wage differences are caused solely by...

In 2018, many unskilled workers in the United States earned the federal minimum wage of $7.25...

In 2018, many unskilled workers in the United States earned the federal minimum wage of $7.25 per hour. By contrast, average earnings in 2018 were about $27 per hour, and certain highly skilled professionals, such as doctors and lawyers, earned $100 or more per hour. Instructions: In part a, round your answers to 2 decimal places. For all other parts, enter your answers as a whole number unless otherwise indicated. a. If we assume that wage differences are caused solely...

In 2015, many unskilled workers in the United States earned thefederal minimum wage of $7.25...

In 2015, many unskilled workers in the United States earned the federal minimum wage of $7.25 per hour. By contrast, average earnings in 2015 were about $27.00 per hour, and certain highly skilled professionals, such as doctors and lawyers, earned $135.00 or more per hour.a. If we assume that wage differences are caused solely by differences in productivity, how many times more productive was the average worker than a worker being paid the federal minimum wage? How many times more...

What is the BENEFIT to low wage workers (workers whose wage is near the minimum wage)...

What is the BENEFIT to low wage workers (workers whose wage is near the minimum wage) of raising the minimum wage?

Why would a decrease in the wage of unskilled workers in the United States due to...

Why would a decrease in the wage of unskilled workers in the United States due to competition with workers abroad be expected to increase the number of such workers employed relative to the number of skilled workers in a particular industry?

Exercise 4. Cost Minimization Short and Long Run (Minimum Wage Workers) McDonald’s employs minimum wage workers...

Exercise 4. Cost Minimization Short and Long Run (Minimum Wage Workers) McDonald’s employs minimum wage workers operating registers to take orders. Let y be the output of orders taken in an hour, L be the number of minimum wage workers working the registers, and let K be the number of registers. The production function is y=100∙L½K½. Let the number of registers, K=4, be fixed. Are there diminishing marginal returns to labor? Explain why, and find ∂y/∂L. Let the number of...

In response to growing concern about a ‘wage gap’ between skilled and unskilled workers

In response to growing concern about a ‘wage gap’ between skilled and unskilled workers, candidate Hiram Bloviate has offered two alternative proposals designed to close the wage gap by making low wage workers more attractive to employers. • The first is to remove the cap on the amount of worker wages subject to the employer paid portion of the Social Security tax (the current cap is around $100,000), as well as eliminating the deductibility of capital expenditures (that is, employers can...

"Assume that a binding minimum wage does NOT shift the labour demand for unskilled labour. If...

"Assume that a binding minimum wage does NOT shift the labour demand for unskilled labour. If it is fairly easy to replace workers with machinery, then a rise in minimum wage will lead to an increase in the total wage bill (total revenue of all workers), all else equal." Do you agree? For full marks, you need to supply a graph. (a) A graph carries 2.5 marks. The usual deductions for missing and incorrect labels apply. (b) An explanation carries...

Part I. Minimum wage workers often report feeling invisible. Where do you encounter minimum wage workers?...

Part I. Minimum wage workers often report feeling invisible. Where do you encounter minimum wage workers? What sorts of services do they provide? Have you ever worked in a low-wage job? If so, what was your experience? Part II. After reading the article, answer the following questions: 1. Why do you think low-wage workers are reluctant to form labor organizations as Ehrenreich discovered at Wal-Mart? How do you think employees should lobby to improve working conditions? 2. Ehrenreich found that...

Suppose that the U.S. government increases the legal minimum wage. Assume that most of the workers employed in the production of coffee are paid the legal minimum wage rate.

write a paragraph addressing question below and create a basic graph describingSuppose that the U.S. government increases the legal minimum wage. Assume that most of the workers employed in the production of coffee are paid the legal minimum wage rate.Will this affect the supply or the demand for coffee? Why?Which determinant of demand or supply is being affected?Create a graph with before- and after-curves on the same axes.How will this change the equilibrium price and quantity of coffee, assuming all...

Subjects