Inefficiency in an Economy Can Be Caused by

question 140

Multiple Choice

Inefficiency in an economy can be caused by

• A)misallocating resources.
• B)underemploying resources.
• C)discrimination.
• D)All of the above are correct.

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Definitions:

Married Filing Jointly

A tax filing status for married couples that allows them to combine their tax obligations into a single return.

Tax Equation

A mathematical formula used to calculate the amount of taxes owed based on income, deductions, and applicable tax rates.

Net Pay

The amount of money a worker takes home after all deductions, such as taxes and retirement contributions, have been subtracted from the gross salary.

Social Security Tax

The amount of Social Security a worker pays depends on the Social Security percentage and the maximum taxable income for that year; the amount is split between the employee and the employer.