The University of California at Irvine (UCI)allows Student Organizations and Private

question 128

Multiple Choice

The University of California at Irvine (UCI) allows student organizations and private firms to sell items on campus to raise funds for various activities.Many of the organizations sell boba,a Taiwanese tea drink,because boba is popular with students.The market for boba on the UCI campus is very competitive.If legislation is passed to restrict the entry of private firms into the boba market at the UCI campus,the

• A) market would become less competitive.
• B) market would become more competitive.
• C) demand for boba would fall.
• D) supply for boba would increase.
• E) demand for boba would increase.

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Definitions:

Payroll Tax

Levies placed on employers and employees, often determined as a fraction of the payroll expenses employers incur for their staff.

Workers' Compensation Insurance

Insurance that provides medical benefits and wage replacement to employees injured in the course of employment.

Payroll Amounts

The total sum of money an employer is obligated to pay its employees for a set period or on a given date.

Federal Unemployment Tax Rate

The rate at which employers are taxed to contribute to the United States’ federal unemployment funding.