Statement I: Most Americans Pay More in Social Security Tax

question 156

Multiple Choice

Statement I: Most Americans pay more in Social Security tax than in personal income tax.
Statement II: A tax on cigarettes is more regressive than a tax on long distance phone calls.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

---

Definitions:

Swap Contract

A derivative contract through which two parties exchange financial instruments, typically involving cash flows based on a specified notional amount.