Flashcards in Week 3- Problem set Deck (13):
When Payroll tax enacted:
Wage receives by worker falls.
Wage that firms have to pay rises.
Rent control help-
Help poor people by making housing more affordable
Rent control dictates-
Maximum rent that landlords may charge tenants.
Congress sought that workers and firms pay-
Half and half for the FICA tax.
Tax on wages that firms pay their workers.
Ex: FICA tax.
Legal minimum price
Ex: minimum wage.
Falls more heavily on the side of market that is less elastic.
Policymakers use taxes to-
Raise revenue for public purposes.
Influence market outcomes.
Legal maximum on price at which a good can be sold.
Distribution of tax burden btwn buyers and sellers.
Burden of tax shared among participants in a market.
When policymakers set price-
They obscure signals that normally guide allocation of society's resources.
Minimum wage dictates-
Lowest price employers may pay for labor.
Minimum wage that firms may pay for workers.
Have greatest impact for teenage labor.