Try to grab for the labor market in the United States. Assume the market is perfectly competitive. So the affects of a payroll tax on workers (To make things easy, assume the tax is a fixed amount, say $1000). Label the wage paid by firms before the tax F1, the wage paid with the tax F2, The wage received by workers before the tax W1, and the wage received with the tax W2. Label the number of jobs before the tax Q1 and the number of jobs with the tax Q2 the deadweight loss

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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4:08 PM Tue Apr 27
* 38% I
( Notes
April 27, 2021 at 4:08 PM
A few years ago the house of representatives
passed a bill to change the payroll tax paid by
workers(The tax that fun Social Security let's
analyze how this tax affects workers, firms, and
the government.
Try to grab for the labor market in the United States. Assume the market is perfectly
competitive. So the affects of a payroll tax on workers (To make things easy, assume
the tax is a fixed amount, say $1000). Label the wage paid by firms before the tax F1,
the wage paid with the tax F2, The wage received by workers before the tax W1, and
the wage received with the tax W2. Label the number of jobs before the tax Q1 and
the number of jobs with the tax Q2 the deadweight loss
Transcribed Image Text:4:08 PM Tue Apr 27 * 38% I ( Notes April 27, 2021 at 4:08 PM A few years ago the house of representatives passed a bill to change the payroll tax paid by workers(The tax that fun Social Security let's analyze how this tax affects workers, firms, and the government. Try to grab for the labor market in the United States. Assume the market is perfectly competitive. So the affects of a payroll tax on workers (To make things easy, assume the tax is a fixed amount, say $1000). Label the wage paid by firms before the tax F1, the wage paid with the tax F2, The wage received by workers before the tax W1, and the wage received with the tax W2. Label the number of jobs before the tax Q1 and the number of jobs with the tax Q2 the deadweight loss
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