Economics questions

Question # 00003024 Posted By: neil2103 Updated on: 10/31/2013 04:16 AM Due on: 10/31/2013
Subject Economics Topic General Economics Tutorials:
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152.Most labor economists believe that the supply of labor is

a.

less elastic than the demand and, therefore, firms bear most of the burden of the payroll tax.

b.

less elastic than the demand and, therefore, workers bear most of the burden of the payroll tax.

c.

more elastic than the demand and, therefore, workers bear most of the burden of the payroll tax.

d.

more elastic than the demand and, therefore, firms bear most of the burden of the payroll tax.

153.Lawmakers designed the burden of the FICA payroll tax to be split evenly between workers and firms. Labor economists believe that

a.

lawmakers may have actually achieved their goal, since statistics show that the tax burden is currently equally divided.

b.

the tax raises too little revenue for the government and so it should be eliminated.

c.

firms bear most of the burden of the tax.

d.

workers bear most of the burden of the tax.

154.In 1990, Congress passed a new luxury tax on items such as yachts, private airplanes, furs, jewelry, and expensive cars. The goal of the tax was to

a.

raise revenue from the wealthy.

b.

prevent wealthy people from buying luxuries.

c.

force producers of luxury goods to reduce employment.

d.

limit exports of luxury goods to other countries.

155.Which of the following was not a result of the luxury tax imposed by Congress in 1990?

a.

The larger part of the tax burden fell on sellers.

b.

A larger part of the tax burden fell on the middle class than on the rich.

c.

Even the wealthy demanded fewer luxury goods.

d.

The tax was never repealed or even modified.

156.The burden of a luxury tax falls

a.

more on the rich than on the middle class.

b.

more on the poor than on the rich.

c.

more on the middle class than on the rich.

d.

equally on the rich, the middle class, and the poor.

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  1. Tutorial # 00002845 Posted By: neil2103 Posted on: 10/31/2013 04:17 AM
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