In 2015, Mike Elfred Received a $165,000 Salary from His

question 10

Multiple Choice

In 2015, Mike Elfred received a $165,000 salary from his employer and generated $39,000 net earnings from self-employment from his small business. Which of the following statements is true?

• A) Mike does not owe any self-employment tax because his salary exceeded the 2015 base amount ($118,500) for federal employment tax.
• B) Mike owes both the Medicare and Social Security tax portions of self-employment tax on his $39,000 earnings from his small business.
• C) Mike owes Medicare tax but not Social Security tax on his $39,000 earnings from his small business.
• D) Mike owes Social Security tax but not Medicare tax on his $39,000 earnings from his small business.

Understand the budget line and how it represents all the combinations of goods a consumer can buy with a specific income.

Apply concepts of utility to evaluate consumer satisfaction from different goods combinations.

Understand different types of pay plans and their organizational implications.

Identify the benefits and drawbacks of group-oriented vs. individual-oriented pay plans.

---

Definitions:

Unconditioned Stimulus

A stimulus that instinctively elicits a response without any prerequisite learning.

Conditioned Stimulus

A once-neutral trigger that, upon association with an unconditioned stimulus, in time provokes a conditioned response.

Extinction

In psychology, the gradual weakening and disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.