Exhibit 11­1 in Exhibit 11­1, the Twentieth Unit of the Resource

question 71

Multiple Choice

Exhibit 11­1 In Exhibit 11­1, the twentieth unit of the resource is earning a wage of

• A)$4, all of which is economic rent
• B)$4, none of which is economic rent
• C)$8, all of which is economic rent
• D)$8, none of which is economic rent
• E)$8, half of which is economic rent

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Definitions:

State Unemployment Taxes

Taxes imposed by state governments on businesses based on the amount of wages paid to employees, used to fund unemployment compensation benefits for workers who have lost their jobs.

Withholding Allowances

Claims made on a W-4 form that determine the amount of an employee’s income not subject to federal income tax withholding.

Percentage Method

A way to calculate taxes or other financial figures by applying a specific percentage rate to a base amount.

Federal Income Tax

An annual financial obligation enforced by the IRS on earnings of persons, businesses, trusts, and other legal entities.