Figure: Benin in the Figure, Benin Has 32 Workers

question 171

Multiple Choice

Figure: Benin In the figure, Benin has 32 workers, and the price per ton of cotton and ton of rice is $2,500 and $1,200, respectively. The average wage with no trade is ______, and the average wage with trade is ________.

• A) $850; $1,081.25
• B) $768.75; $1,000
• C) $1,000; $850
• D) $1,000; $1,081.25

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Definitions:

Federal Unemployment Taxes

Federal Unemployment Taxes are levied by the federal government to fund the unemployment benefits and services provided to workers who have lost their jobs.

Payroll Tax Expense

Payroll tax expense is the employer's cost associated with taxes based on employee wages, including Social Security and Medicare taxes.

Payroll Tax

Levies placed on employers and employees, often determined as a fraction of the payroll expenses employers incur for their staff.

Workers' Compensation Insurance

Insurance that provides medical benefits and wage replacement to employees injured in the course of employment.