The payroll tax is regressive because
A. wages and salaries are a larger percentage of total income for those higher on the income scale.
B. the elasticity of labor supply is close to zero.
C. most of the tax does not apply to wages and salaries above $118,500.
D. wealthy individuals have more deductions from the payroll tax.
Answer: C
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An example of a nontradable good is a:
A. haircut by a renowned Italian hairstylist in Florence. B. rare gemstone found in South Africa. C. bottle of wine from a remote valley in France. D. good that has no legal restriction placed on it.
Assets are:
A. saving minus investment. B. current income minus spending on current needs. C. anything of value one owns. D. stocks, bonds, and credit card balances.
As the cost of resources goes up, producers ________ production, which drives prices ________
A) increase; up B) increase; down C) decrease; up D) decrease; down
The employment rate is defined as
A) the percentage of the labor force holding employment. B) the percentage of the noninstitutional population either working currently or looking for work. C) the percentage of the noninstitutional population holding employment. D) the percentage of the population currently receiving wages or salaries. E) the percentage of the population currently working and living principally on earnings from labor.