In General,a $1 Tax Placed on Each Unit a Producer

question 12

Multiple Choice

In general,a $1 tax placed on each unit a producer sells will be

• A) entirely borne by the producers.
• B) split 50/50 between producers and consumers.
• C) entirely borne by the consumers.
• D) shared between producers and consumers.
• E) entirely shifted to consumers.

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Definitions:

SUTA Payable

A liability account that records amounts owed for the state unemployment tax.

Social Security Administration

A U.S. government agency that administers social programs covering disability, retirement, and survivors' benefits, among others.

W-2

A W-2 form is a tax document issued by employers in the United States to employees, indicating the amount of wages paid and taxes withheld during the year.

W-3

A tax form used in the United States to summarize the total wages paid and taxes withheld for employees to the Social Security Administration.