A Merit Rating

question 98

Multiple Choice

A merit rating:

• A)Is assigned by the state.
• B)Reflects a company's stability or instability in employing workers.
• C)Adjusts the employer's SUTA tax rate.
• D)Affects state unemployment taxes paid by an employer.
• E)All of the choices are correct.

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Definitions:

Elasticity Negative

A term used to describe the relationship when the demand for a good or service decreases as its price increases, indicating consumers' sensitivity to price changes.

Income Elasticity

A measure of how the quantity demanded of a good or service changes in response to changes in consumer income.

Normal Good

A good whose demand increases when consumer income rises.

Cross-price Elasticity

An indicator showing the responsiveness of the demand for a particular item to variations in the price of a different item.