Choose the Correct Statement

question 4

Multiple Choice

Choose the correct statement.

• A)The purpose of Form W-4 is to calculate the amount of Social Security taxes to withhold from an employee's wages.
• B)The employer is the one to calculate the number of withholding allowances.
• C)If no Form W-4 is completed,then the employer is required to withhold as if the employee is single with no exemptions.
• D)Employees must prove to their employer that they are entitled to the number of allowances claimed on the W-4 form.

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Definitions:

Superstars Pay

Refers to the significantly high salaries or earnings of top performers or individuals in specific industries such as sports, entertainment, and business due to their exceptional skill, talent, or marketability.

Marginal Revenue Productivity

The additional revenue generated by employing one more unit of a given resource or factor of production.

Elastic Product Demand

A situation where the demand for a product is sensitive to changes in price, meaning small price changes can cause large changes in quantity demanded.

Economic Profits

Profits that exceed the opportunity costs of all resources employed by the firm, reflecting earnings above the normal expected return.