Table 10.1 -Refer to Table 10.1. If the Price of Output Is

question 164

Multiple Choice

Table 10.1
-Refer to Table 10.1. If the price of output is $2 per unit and the wage rate is $60, ________ workers should be hired.

• A) five
• B) six
• C) seven
• D) eight

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Definitions:

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.

Medicare Tax

A federal tax deducted from employees' paychecks to fund the Medicare program, which provides healthcare to seniors.

Federal Withholding

The amount of an employee's pay withheld by the employer and sent directly to the government as partial payment of taxes.