An Example of a Required Deduction from an Employee's Paycheck

question 35

Multiple Choice

An example of a required deduction from an employee's paycheck is ____.

• A) healthcare insurance
• B) unemployment tax
• C) FICA tax
• D) health savings account contributions
• E) child care deductions

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Definitions:

Economic Cost

The total cost of choosing one action over another, including both explicit costs and opportunity costs.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.

Accounting Profit

The total revenue of a business minus the explicit costs and depreciation, calculated using standard accounting practices.

Annual Revenue

The total income generated by a company or an organization from its operations, calculated on a yearly basis.