Asked by
Alexis Liles
on Oct 26, 2024
Verified
The FICA tax falls most heavily on workers because the price elasticity of demand for labor is greater than the price elasticity of supply of labor.
FICA Tax
A U.S. federal payroll tax that funds Social Security and Medicare, required to be paid by both employees and employers.
Price Elasticity
A measure of how much the quantity demanded of a good responds to a change in the price of that good.
Labor
The human effort, including both physical and mental, used in the production of goods and services.
- Examine the elements affecting how taxes are shared between purchasers and vendors.
Verified Answer
AT
Learning Objectives
- Examine the elements affecting how taxes are shared between purchasers and vendors.