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Firm A has a total factor productivity of 10.0 while Firm B has a total factor productivity of 8.0. Therefore, Firm B is the more productive firm and utilizes its resources most efficiently.
Net Earnings
The amount of income left after subtracting all expenses, taxes, and costs from the total revenue.
FUTA Taxes
Federal Unemployment Tax Act taxes are paid by employers to fund the unemployment account of the federal government.
Taxpayer
A taxpayer is any person or entity that is obliged to pay taxes to a federal, state, or local government.
Medicare Taxes
Taxes deducted from earnings to fund the Medicare program, which provides healthcare benefits to eligible elderly and disabled individuals.
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