Table 3-4 Brenda and Eric Run a Business That Involves Setting Up

question 175

Multiple Choice

Table 3-4
Brenda and Eric run a business that involves setting up and testing computers. The following table applies.

-Refer to Table 3-4.Which of these points would not be on Brenda's production possibilities frontier,based on a 40-hour week and assuming Brenda can switch between setting up and testing computers at a constant rate?

• A)(60 computers tested, 0 computers set-up)
• B)(30 computers tested, 40 computers set-up)
• C)(12 computers tested, 60 computers set-up)
• D)(6 computers tested, 72 computers set-up)

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Definitions:

FICA Tax Rate

The combined rate for Social Security and Medicare taxes that employers and employees must pay on wages.

OASDI

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

State Income Tax

A tax levied by a state on the income of its residents and businesses operating within its jurisdiction.

Federal Income Tax

The annual income of individuals, corporations, trusts, and other legal organizations is subject to taxation by the IRS.