What is personal income tax? On which principle does the federal government levy this tax?
What will be an ideal response?
The personal income tax is a tax levied on the income of an individual or a family. The federal government levies personal income tax based the ability-to-pay principle as the personal income tax is progressive in nature. The ability-to-pay principle of taxation refers to the idea that people with greater ability to pay taxes should pay higher taxes.
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Suppose the labor force stays constant, and the working-age population stays constant, but a greater number of persons who were unemployed become employed. The labor force participation rate will
A) decrease. B) remain constant. C) increase. D) not change in a way that can be predicted.
If the entire Social Security payroll tax were paid the employees _____
a. firms would be better off b. more individuals would be self-employed c. the nominal wage paid by employers would increase d. the employees after-tax wage would fall
Classical unemployment can be caused by which of the following?
A. Minimum wage laws B. Bargaining by unions C. Efficiency wages D. All these create classical unemployment.
The production possibilities frontier has a tendency to bow outward from the origin
a. True b. False Indicate whether the statement is true or false