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Guillermo Jimenez
on Dec 08, 2024

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Firms may react to a payroll tax by

A) substituting labor for capital.
B) reducing their output.
C) shifting to less capital intensive techniques.
D) hiring more labor.

Capital Intensive Techniques

Production methods that require a higher investment in physical capital rather than labor.

Payroll Tax

Impositions required from employers or employees, consistently based on a proportion of the payment to laborers.

  • Learn about the essence of tax incidence and the dynamics of shifting tax liabilities.
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Kayla NanezDec 11, 2024
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