In 2010 the federal government reduced the Social Security tax withholding rate from 12.4 percent (6.2 percent on both the employer and employee) to 8.4 percent (4.2 percent on both the employer and employee) on the wages of all workers. If the tax were redefined such that the entire 12.4 percent was statutorily levied on employers, economic analysis suggests that the actual burden of the tax
would
a. remain unchanged.
b. shift more heavily toward employers.
c. shift more heavily toward employees.
d. be different than if the entire 12.4 percent was statutorily imposed on employees.
A
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The largest single portion of the federal budget is devoted to
A. national defense. B. Medicare and Medicaid. C. Social Security and unemployment compensation. D. education. E. interest payments on the national debt.
One determinant of the derived demand for a resource is the
a. price of the product made using the resource b. extra cost of the resource c. marginal resource cost of the resource d. availability of the resource in the marketplace e. quantity of the resource demanded
Total cost can be defined as:
A. the amount that an individual spends on all normal goods and services within a specified period of time. B. the amount that a firm spends on all inputs that go into producing a good or service. C. the amount that a firm receives from the sale of goods and services. D. None of these is correct.
If marginal cost is increasing, then average variable cost must be increasing simultaneously.
Answer the following statement true (T) or false (F)