Suppose that government levies a payroll tax on employers and employees to finance employment insurance a. Using a clear, well- labeled supply- demand diagram, show how payroll tax affects labor market outcome, e.g. employment and market wage rates. b. On the graph, show the workers and firms surplus before and after the tax and deadweight loss created by the tax. c. Assume that the elasticity of labor supply and demand are 0.2 and -0.6, respectively. с. According to the law the payroll tax is split between employees and employers so that firms pay 58 percent of the tax, and employees pay 42 percent. Do you think parliament can mandate this division of the tax burden?

Market for Laboratory Aides Wage (Doflars per hour) Labor Demanded (Number of workers) Demand Shifter For each of the proposals, use the previous graph to determine the new number of laboratory aides hired. Then compute the after - tax amount paid by employers (that is, the wage paid to workers plus any taxes collected from the employers) and the after-tax amount earned by laboratory aides (that is, the wage received by workers minus any taxes collected from the workers). Tax Proposal Levied on Employers (Dollars per hour) Levied on Workers (Dollars per hour) 4 0 2 After - Tax Wage Paid by Employers (Dollars per hour ) After - Tax Wage Received by Workers ( Dollars per hour) Quantity Hired (Number of workers) 0 42

Tax incidence indicates O A. who is not legally required to send a tax payment to the government. O B. who is legally required to send a tax payment to the government. OC. the burden of a tax on consumers. O D. the burden of a tax on producers. O E. the actual division of the burden of a tax.

Oc

Doyle and Samphantharak (2008) find that when a 5% gas tax is implemented, prices consumers pay for gas increase by about 4%. What role does demand elasticity play in determining the size of this price change? That is, under what demand elasticity cases would the price change be closer to 5%, or closer to 0%? Illustrate and explain using supply-and-demand graph(s)..

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Can you let me know if i got these correct. thanks

Referred to the above graph of the labor market. The government decides to impose a wage tax as shown on the graph. If the number of workers hired after the imposition of the tax is 800 then the total amount of tax is $___