The Figures Given Below Show the Demand (D)and Supply (S)

question 82

Multiple Choice

The figures given below show the demand (D) and supply (S) curves of labor in two different markets. Figure 15.3
-Refer to Figure 15.3.If the wage rates in market A and market B were set at $15,then:

• A)there would be a shortage of workers in both markets.
• B)there would be a surplus of workers in both markets.
• C)there would be a shortage of workers in market A and a surplus of workers in market B.
• D)there would be a shortage of workers in market B and a surplus of workers in market A.
• E)the market as a whole would be in equilibrium.

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Definitions:

Withholding Base

This term represents the amount of an individual's income that is subject to tax withholding by employers, determining the portion of income that will have taxes withheld in advance.

Directly Tipped Employee

An employee who receives tips directly from customers for services rendered, often subject to different tax reporting requirements.

Form 8027

A tax form used by employers who operate large food or beverage establishments to report tips received by employees.

FICA Tax

Federal Insurance Contributions Act tax, a payroll tax deducted from employees' wages for Social Security and Medicare benefits.