Which of the Following Is TRUE

question 21

Multiple Choice

Which of the following is TRUE?

• A) The main reason why wages are high in some countries is the existence of unions in those countries.
• B) The wages in unionized jobs tend to be lower than the wages in nonunionized jobs.
• C) Unions increase the supply of labor and increase wages as a result.
• D) Unions raise wages for some workers and lower wages for other workers.

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Definitions:

FICA Rate

The percentage of social security and Medicare taxes that must be paid by both employees and employers under the Federal Insurance Contributions Act.

SUTA Rate

The rate imposed on employers by a state to fund unemployment benefits, varying by state and the employer's claim history.

Interstate Commerce

Refers to any business or trade activity that crosses state lines, regulated by the federal government in the United States.

Federal Income Tax

A fiscal duty assessed by the federal authority on the annual revenues of people, firms, trusts, and assorted legal entities.