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    Business
  3. Study Set
    Modern Labor Economics
  4. Exam
    Exam 3: The Demand for Labor
  5. Question
    If a Tax Is Placed on an Employer
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If a Tax Is Placed on an Employer

Question 2

Question 2

Multiple Choice

If a tax is placed on an employer,


A) workers will not have to pay the tax.
B) both wages and employment levels will usually decrease.
C) customers will not have to pay the tax.
D) wages will decrease, but employment levels will increase.

Correct Answer:

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