Figure: Strawberries and Submarines II

question 226

Essay

Figure: Strawberries and Submarines II
(Figure: Strawberries and Submarines II) Look at the figure Strawberries and Submarines II.Assume that the economy is now operating at point
A.The opportunity cost of moving to point C is equal to million tons of strawberries:
A.800
B.200
C.2
D.50

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Definitions:

Payroll Tax

Taxes that are imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

FICA Taxes

Taxes mandated by the Federal Insurance Contributions Act, which fund Social Security and Medicare, split between employers and employees.

Federal Income Taxes

Charges imposed by the national government on the yearly income of persons, businesses, trusts, and other legal bodies.

Payroll Tax Expense

Taxes that employers are required to pay on behalf of their employees, including contributions to social security, healthcare, and unemployment insurance.