Ask Question
13 November, 15:57

Suppose the government doesn't want to discourage employers from hiring research assistants and, therefore, wants to minimize the share of the tax paid by the employers. Of the three tax proposals, which is best for accomplishing this goal?

+1
Answers (1)
  1. 13 November, 18:17
    0
    Answer: The options are given below:

    A. The proposal in which each side pays half the tax.

    B. The proposal in which workers pay the entire tax.

    C. The proposal in which employers pay the entire tax.

    D. None of the proposals is better than the others.

    The correct option is D. None of the proposals is better than the others.

    Explanation:

    From this question given above, we can see that the equilibrium quantity of labor, the amount that the employers will pay per hour after the tax, and the amount that the workers will take home do not depend on who will pay the tax.

    Therefore, it does not matter which tax proposal given in the options above the government implements because none of the proposals is better than the others.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Suppose the government doesn't want to discourage employers from hiring research assistants and, therefore, wants to minimize the share of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers