You receive a paycheck from your employer, and your pay stub indicates that $300 was deducted to pay the FICA (Social Security/Medicare) tax. Which of the following statements is correct?
a. The $300 that you paid is not necessarily the true burden of the tax that falls on you, the employee.
b. Your employer is required by law to pay $300 to match the $300 deducted from your check.
c. This type of tax is an example of a payroll tax.
d. All of the above are correct.
d
You might also like to view...
If, as a result of doubling all its inputs, a firm can more than double its output, the firm's production function exhibits
a. constant returns to scale. b. increasing returns to scale. c. decreasing returns to scale. d. increasing marginal productivity to at least one input.
In insurance markets, adverse selection often
A. brings down prices for insurance premiums. B. eliminates exchange possibilities that would be beneficial to both consumers and insurance companies alike. C. creates exchange possibilities that are beneficial to consumers and insurance companies. D. creates an abundance of lawsuits.
A perfectly competitive firm will earn positive economic profits in the range of output for which the firm’s price is _________ its minimum average total cost.
A) below B) above C) equal to D) below its marginal cost and
The lower portion of the circular flow model contains factor markets in which households provide:
A. goods and services. B. savings, spending, and investment. C. natural resources, labor, and capital. D. output of all final goods and services produced.