Which of the Following Is a Correct Statement

question 71

Multiple Choice

Which of the following is a correct statement?

• A) Rent control and the minimum wage are both illustrations of price floors.
• B) Rent control is an illustration of a price floor and the minimum wage is an illustration of a price ceiling.
• C) Rent control and the minimum wage are neither illustrations of price floors nor price ceilings.
• D) Rent control is an illustration of a price ceiling and the minimum wage is an illustration of a price floor.
• E) Rent control and the minimum wage are both illustrations of price ceilings.

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Definitions:

Federal Unemployment Taxes

Taxes paid by employers to fund the federal government's oversight of the state's unemployment compensation programs.

Withhold

To deduct or hold back a portion of something, such as taxes from a paycheck.

Take-Home Pay

The net amount of income an employee actually receives after deductions such as taxes and retirement contributions.

Voluntary Deductions

Deductions from an employee's paycheck that the employee chooses to have withheld for benefits such as retirement plans, health insurance, and union dues.