1.2.2 For each of the following statements, do you agree or disagree? Why?

a. Economic theory predicts unequivocally that a payroll tax reduction will increase the supply of labor.

b. Corporate income taxes levied on a monopolist are likely to be regressive because the monopoly can pass on its burden to consumers.

c. If labor supply is relatively elastic, the burden of a payroll tax falls largely on workers.