Which of the Following Taxes Is,at Least in Large Part,a

question 97

Multiple Choice

Which of the following taxes is,at least in large part,a tax on labor?

• A)the Social Security tax
• B)the Medicare tax
• C)the federal income tax
• D)All of the above are correct.

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Definitions:

Economic Efficiency

A condition in which all available resources are utilized in the most effective manner to satisfy society's needs and wants, minimizing waste and maximizing value.

Market Price

The current market value at which an asset or service is up for sale or purchase.

External Benefits

Positive effects experienced by those not directly involved in an economic transaction.

Efficient Equilibrium

A state in which resources are allocated in the most efficient manner, leaving no potential for reallocating resources to make someone better off without making someone else worse off.