Use the Following to Answer Questions

question 276

Multiple Choice

Use the following to answer questions:
Figure: The Market for Yachts
-(Figure: The Market for Yachts) Look at the figure The Market for Yachts. A quota of _____ will bring about the same price and output in the market for yachts as would an excise tax of $60,000.

• A) 2,000
• B) 3,000
• C) 4,000
• D) The answer is impossible to determine.

---

Definitions:

Taxable Income

The portion of an individual's or entity's income used to determine tax liability.

OASDI

Old-Age, Survivors, and Disability Insurance, a comprehensive federal benefits program that provides retirement, disability, and survivor benefits.

Hospital Insurance

A type of insurance coverage that specifically covers the costs of hospital stays and associated medical services.

Withholding Allowance

Refers to an exemption that reduces how much income tax an employer deducts from an employee's paycheck.