Suppose That a Worker in Country a Can Make Either

question 101

Multiple Choice

Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year.Country A has 100 workers.Suppose a worker in Country B can make either 2 iPods or 10 tablets each year.Country B has 200 workers.A bundle of goods that Country B could potentially make would be:

• A) (400 iPods, 2,000 tablets).
• B) (300 iPods, 500 tablets).
• C) (200 iPods, 1,500 tablets).
• D) (100 iPods, 2,000 tablets).

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Definitions:

Social Security Tax Rate

The Social Security tax rate is a percentage of income that is taxed to fund the Social Security program, paid by both employees and employers.

Medicare Tax Rate

The percentage of an employee's earnings that is withheld by the employer to contribute to the U.S. Medicare program, which provides health insurance to eligible individuals.

Federal Unemployment Compensation Tax

A tax imposed on employers to fund the federal government's oversight of the state unemployment insurance programs.

Quick Ratio

A liquidity metric that evaluates a company's ability to pay its current liabilities without needing to sell inventory, calculated as (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities.