Taxable Compensation Received from a Business Does Not Include

question 13

Multiple Choice

Taxable compensation received from a business does not include:

• A) The employee's share of FICA taxes
• B) The employer's share of FICA taxes
• C) Bonuses paid to the employee
• D) Reimbursements for personal expenses

---

Definitions:

Purely Competitive

A market structure characterized by many buyers and sellers, all selling identical products, with no single buyer or seller able to influence the market price.

Diminishing Marginal Returns

A principle stating that if one factor of production is increased while other factors are held constant, the additional output generated will eventually decrease, related to diminishing marginal utility but applied to production.

Short-Run Equilibrium

A condition in a market or economy where all forces are balanced, but only temporarily; prices and output may change until a long-run equilibrium is achieved.

Long-Run Equilibrium

A condition where an economy or market achieves a stable state after adjustments, where supply equals demand over an extended period.