Which of the Following Statements Is True

question 26

Multiple Choice

Which of the following statements is true ?

• A) Competitive markets result in the socially efficient price and quantity when externalities exist.
• B) Command-and-control regulations set an environmental goal and dictate how the goal will be achieved.
• C) Economists prefer command-and-control regulations to incentive-based pollution programs.
• D) An effluent tax is a tax imposed on rich people.

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Definitions:

FICA Taxes

Taxes collected under the Federal Insurance Contributions Act, funding Social Security and Medicare, required to be paid by both employees and employers.

Two Jobs

Working for two distinct employers at the same time, often to increase income through additional work.

Wages

Payments made to employees for services rendered, typically calculated on an hourly, daily, or piecework basis, and subject to income tax.

Self-Employment Tax

A tax primarily for individuals who work for themselves, covering Social Security and Medicare taxes.