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) 0 2 Levied on Workers (Dollars per hour) 0 4 2 Quantity Hired (Number of workers) After-Tax Wage Paid by Employers (Dollars per hour) The proposal in which the entire tax is collected from workers O The proposal in which the tax is collected from each side evenly The proposal in which the tax is collected from employers O None of the proposals is better than the others After-Tax Wage Received by Workers (Dollars per hour) Suppose the government is concerned that laboratory aides already make too little money and, therefore, wants to minimize the share of the tax paid by employees. Of the three tax proposals, which is best for accomplishing this goal?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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WAGE (Dollars per hour)
20
18
16
14
12
10
co
4
2
0
0
Supply
Demand
50 100 150 200 250 300 350 400 450 500
LABOR (Number of workers)
Graph Input Tool
Market for Laboratory Aides
Wage
(Dollars per hour)
Labor Demanded
(Number of workers)
Demand Shifter
Tax Levied on
Employers
(Dollars per hour)
4
310
0
Labor Supplied
(Number of workers)
Supply Shifter
Tax Levied on
Workers
(Dollars per hour)
?
190
0
Transcribed Image Text:WAGE (Dollars per hour) 20 18 16 14 12 10 co 4 2 0 0 Supply Demand 50 100 150 200 250 300 350 400 450 500 LABOR (Number of workers) Graph Input Tool Market for Laboratory Aides Wage (Dollars per hour) Labor Demanded (Number of workers) Demand Shifter Tax Levied on Employers (Dollars per hour) 4 310 0 Labor Supplied (Number of workers) Supply Shifter Tax Levied on Workers (Dollars per hour) ? 190 0
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).
Levied on
Employers
(Dollars per hour)
4
Tax Proposal
0
2
Levied on
Workers
(Dollars per
hour)
0
4
2
Quantity Hired
(Number of
workers)
After-Tax Wage Paid by
Employers
(Dollars per hour)
The proposal in which the entire tax is collected from workers
O The proposal in which the tax is collected from each side evenly
The proposal in which the tax is collected from employers
None of the proposals is better than the others
After-Tax Wage Received by
Workers
(Dollars per hour)
Suppose the government is concerned that laboratory aides already make too little money and, therefore, wants to minimize the share of the tax paid
by employees. Of the three tax proposals, which is best for accomplishing this goal?
Transcribed Image Text: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). Levied on Employers (Dollars per hour) 4 Tax Proposal 0 2 Levied on Workers (Dollars per hour) 0 4 2 Quantity Hired (Number of workers) After-Tax Wage Paid by Employers (Dollars per hour) The proposal in which the entire tax is collected from workers O The proposal in which the tax is collected from each side evenly The proposal in which the tax is collected from employers None of the proposals is better than the others After-Tax Wage Received by Workers (Dollars per hour) Suppose the government is concerned that laboratory aides already make too little money and, therefore, wants to minimize the share of the tax paid by employees. Of the three tax proposals, which is best for accomplishing this goal?
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