Questions:

1. Refer to Figure 19.1. After firms can respond to the payroll tax, the workers will take home a per-hour wage of

a.$5

b.$12

c.$7

d.$10

2.Refer to Figure 19.1. After firms can respond to the payroll tax, employment will

a.700

b.500

c.800

d.650

3.Refer to Figure 19.1. Prior to the imposition of a payroll tax, this labor market was in equilibrium at a wage of ________ and employment of ________ workers.

a.$7.00; 800

b.$5.00; 500

c. $10.00; 700

d. $12.00; 650

4.Refer to Figure 19.1. The payroll tax imposed is ________ per unit of labor.

a.$5

b.$10

c.$3

d.$2

5.Refer to Figure 19.1. Initially after the payroll tax is imposed, there will be

a.an excess supply of labor or 100 units.

b.an equilibrium in the labor market.

c.an excess supply of labor of 150 units.

d.an excess demand for labor of 100 units.

Wager rate 5 ' ( as a function of per how what firms pay ) S las a function of what workers take home ) 12 Theforinsists 10 Women 500 650 700 800 Units of labor