Mahmet Earned Wages of $118,650 During 2014

question 57

Multiple Choice

Mahmet earned wages of $118,650 during 2014.He is single and claims two withholding allowances.How much will Mahmet's employer withhold in social security taxes for the year?

• A) $7,254.00.
• B) $7,356.30.
• C) $8,950.50.
• D) $9,076.73.

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Definitions:

Absolute Advantage

The ability of a country or entity to produce a good more efficiently (using fewer resources) than another country or entity.

Economic Efficiency

A condition where resources are allocated in a way that maximizes the production of goods and services at the lowest cost to society.

Opportunity Cost

The value of the next best alternative forgone as a result of making a decision.

Comparative Advantage

The ability for a particular individual, commercial entity, or country to produce a certain good or render a service with significantly less opportunity cost compared to opposition.