Asteria Earned a $27,500 Salary as an Employee in 2020

question 157

Multiple Choice

Asteria earned a $27,500 salary as an employee in 2020. How much should her employer have withheld from her paycheck for FICA taxes? (Round your answer to the nearest whole dollar amount.)

• A)$399
• B)$1,705
• C)$2,104
• D)$4,208

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Definitions:

Aggregate Income

The total income earned by all individuals or entities in an economy, including wages, profits, rents, and investment earnings, over a specific time period.

Aggregate Consumption

The total amount of goods and services consumed in an economy over a specific period.

Consumption Function

A relationship in economic terms between the gross national income and the aggregate consumption level.

Aggregate Income

The total income earned by all factors of production in an economy, including wages, rents, interest, and profits, over a specific period.