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Which of the Following Is True Regarding the Incidence of the Social

Question 24

Multiple Choice

Which of the following is true regarding the incidence of the social security tax?


A) Regardless of how the tax is collected,employees always bear the entire tax burden.
B) Most economists believe that employers generally bear most of the burden of the social security tax.
C) When the aggregate labor supply curve is said to be inelastic,the income and substitution effects of a social security tax exactly offset one another.
D) When the supply curve of labor is perfectly elastic the net wage received by workers falls by the entire amount of the tax.

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