Figure 3-7 -Refer to Figure 3-7.If Bintu and Juba Switch from Each

question 226

Multiple Choice

Figure 3-7

-Refer to Figure 3-7.If Bintu and Juba switch from each person dividing her time equally between the production of cups and bowls to each person spending all of her time producing the good in which she has a comparative advantage,then total production will increase by

• A) 1 bowl and 1 cup.
• B) 2 bowls and 4 cups.
• C) 3 bowls and 5 cups.
• D) 4 bowls and 8 cups.

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Definitions:

Payroll Taxes Collected

Taxes that are withheld from employees' wages by their employer and remitted to the government, including amounts for social security and Medicare.

Workers' Compensation

A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment.

FICA

Refers to the Federal Insurance Contributions Act taxes, which are payroll taxes paid by both employees and employers to fund Social Security and Medicare.

Overtime Earnings

Compensation received for hours worked in excess of the standard workweek hours, often calculated at a rate higher than the regular hourly rate.