Use the following figure to answer the question : Figure 18-2 :
shows the demand and supply curves of labor.A per-unit tax imposed on the wage income of the employees shifts the supply curve of labor upward.
-In Figure 18-2,as a result of a per-unit tax:
A)the total wage paid by employers rises,while the net-wage received by employees declines.
B)the total wage paid by employers declines,while the net-wage received by the employees rises.
C)the total wage paid by employers declines.
D)the total wage received by employees decline.

Question

Use the following figure to answer the question : Figure 18-2 : 
shows the demand and supply curves of labor.A per-unit tax imposed on the wage income of the employees shifts the supply curve of labor upward. 
-In Figure 18-2,as a result of a per-unit tax:
A)the total wage paid by employers rises,while the net-wage received by employees declines. 
B)the total wage paid by employers declines,while the net-wage received by the employees rises. 
C)the total wage paid by employers declines. 
D)the total wage received by employees decline.

Quizplus · Accepted Answer

A per-unit tax on wage income will cause the supply curve of labor to shift upward, resulting in a decrease in the equilibrium quantity of labor employed and an increase in the equilibrium wage rate. This means that the total wage paid by employers will rise, but the net-wage received by employees will decline because of the tax. Therefore, the correct answer is A.

Use the Following Figure to Answer the Question : Figure