Which of the Following Is an Important Indicator of a Nation's

question 73

Multiple Choice

Which of the following is an important indicator of a nation's increasing purchasing power?

• A) a growing proportion of middle-income households
• B) declining per capita income
• C) stable household incomes
• D) stable incomes for the wealthiest consumers
• E) a large gap developing or persisting between top incomes and lowest incomes

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Definitions:

Payroll Tax Deposits

Amounts employers set aside and send to tax authorities to cover their obligations for employee payroll taxes.

FUTA Tax

A national levy charged to employers to finance state employment services and joblessness benefits.

Self-Employment Taxes

Taxes that self-employed individuals pay, covering Social Security and Medicare taxes, based on their net earnings.

Net Earnings

The amount of income left over after all deductions, including taxes, expenses, and allowances, have been subtracted from gross earnings.