Payroll Taxes Were Instituted by the 16^th Amendment to the United

question 44

Multiple Choice

Payroll taxes were instituted by the 16^th Amendment to the United States Constitution:

• A) To pay for governmental salaries.
• B) To make money from businesses that had employees.
• C) To fund infrastructure improvements of booming cities.
• D) To penalize people who needed employment.

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Definitions:

Consumer Surplus

The divergence between the amount consumers are willing to pay for a product or service and the amount they actually pay.

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good compared to what they actually receive, usually measured by the area above the supply curve and below the market price.

Total Surplus

The aggregate net advantage to society, encapsulated by both consumer and producer surplus within a market.

Import or Export

The practice of buying goods or services from foreign suppliers (importing) or selling goods or services to foreign buyers (exporting).