Mary Earned $41,258

question 34

Multiple Choice

Mary earned $41,258.75 for the past calendar year. How much did she pay for the year in social security and Medicare taxes? (Social Security Tax is 6.2% of gross wages up to $117,000. Medicare Tax is 1.45% of all gross wages.)

• A) $2,931.25
• B) $3,225.31
• C) $3,156.29
• D) $3,425.31

---

Definitions:

Monopolist

An individual or firm that is the sole provider of a good or service, possessing significant market power over prices and output.

AC

Average Cost, also referred to as the cost per unit of output, often used interchangeably with Average Total Cost.

Deadweight Loss

The reduction in economic performance that is seen when a good or service fails to achieve the equilibrium in a free market.

Perfectly Competitive Industry

An industry structure characterized by many small firms, homogeneous products, and free entry and exit, leading to price-taking behavior.