Under Current Law, Part a of Medicare Is Financed by a Payroll

question 41

Multiple Choice

Under current law, Part A of Medicare is financed by a payroll tax of

• A)2.90 % imposed upon employers.
• B)1.45% imposed upon employers and 1.45% imposed upon employees.
• C)2.90% imposed upon employees.
• D)6.60% imposed upon employers.

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Definitions:

Tariffs and Quotas

Government-imposed taxes on imported goods (tariffs) and limits on the quantity of imports (quotas) to protect domestic industries.

Private Capital

Funds or assets owned by individuals, companies, or investors, not by the government or public entities.

World Bank

An international lending institution that offers financial aid and grants to the governments of developing countries for capital project initiatives.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, typically measured by the rise in real GDP.