The for AGI Deduction for the Self-Employment Tax Is Based

question 29

Multiple Choice

The for AGI deduction for the self-employment tax is based upon:

• A)a total of 15.3% of FICA taxes.
• B)the gross earnings of the business.
• C)filing status.
• D)a total of 7.65% of the employer's share of FICA taxes.

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Definitions:

Limit Pricing

A strategy where a firm sets the price of its product low enough to deter new entrants into the market.

Game Theory

The study of how people behave in strategic situations in which individuals must take into account not only their own possible actions but also the possible reactions of others. Originally developed to analyze the best ways to play games like poker and chess.

Strategic Behavior

Self-interested economic actions that take into account the expected reactions of others.

Dominant Strategy

A strategy that always results in the highest payoff for a player, regardless of the opponents' actions.