In what way is the Social Security payroll tax regressive?
What will be an ideal response?
Although there is just one Social Security payroll tax rate, only wages below a legislated ceiling are taxable. For instance, in 2014 the taxable wage ceiling was $117,000. As a result, the tax rate (tax paid รท total wages) is lower for high-income workers than for low- and middle-income workers.
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A difference between a proprietorship and a partnership is that
A) a proprietorship is easy to form while a partnership is hard to form. B) a proprietorship has only one owner while a partnership has only two owners. C) a partnership allows for specialization while a proprietorship does not. D) the profits in a proprietorship are taxed only once while in a partnership they are taxed twice.
A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5 . Eleven sellers are also willing to sell at the same prices. What is the equilibrium quantity in the market
a. 5 units b. 6 units c. 7 units d. 8 units
Which of the following pairs of goods would be considered complementary?
a. Coca-Cola and Pepsi. b. Computers and computer software. c. Radios and televisions. d. Mass transit and private automobiles. e. Compact discs and cassette tapes.
Consider the labor market in an industry that is initially in equilibrium. Which of the following will result when a government policy suddenly forces firms in this industry to improve their working conditions?
a. The labor supply curve will shift to the right and exert a downward pressure on the wage rate. b. The labor supply curve will shift to the left and exert an upward pressure on the wage rate. c. The labor demand curve will shift to the right and exert an upward pressure on the wage rate. d. The labor demand curve will shift to the left and exert an upward pressure on the wage rate.