Conflicts of Interest in the Certifier Market Often Can Lead

question 12

Multiple Choice

Conflicts of interest in the certifier market often can lead to which of the following?

• A)Higher priced goods and services
• B)Lower competition between substitute goods
• C)A reduction in the number of competitive sellers
• D)Certification bias
• E)Less product choice for the consumer

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Definitions:

FICA Tax

Federal Insurance Contributions Act tax, a United States federal payroll tax imposed on both employees and employers to fund Social Security and Medicare.

Federal Unemployment Tax

A tax paid by employers to fund the unemployment compensation program for laid-off workers.

State Unemployment Tax

A tax that employers pay to fund the unemployment benefits provided to workers who have lost their jobs.

Interest-Bearing Note

A promissory note or loan that accrues interest over time, requiring the borrower to pay back the principal amount plus interest.