If You Have a Salary of $30,000,an IRA Deduction of $2,000,a

question 7

Multiple Choice

If you have a salary of $30,000,an IRA deduction of $2,000,a standard deduction of $4,400,and a FICA rate of 7.65 percent,how much did you pay in FICA this year?

• A)$1,805
• B)$1,958
• C)$2,142
• D)$2,295

Analyze the role of government intervention in correcting market failures due to externalities through taxes and subsidies.

Differentiate between private and social costs, and private and social values.

Identify the conditions for social optimality in the presence of externalities.

Calculate the optimal level of subsidy or tax required to achieve social optimality.

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Definitions:

Social Learning

A theory that explains how people learn new behaviors, attitudes, and skills by observing the actions of others.

Instrumental Learning

Learning based on the consequences of behavior, often described through the law of effect, where behaviors followed by favorable outcomes are more likely to recur.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior.

Operant Conditioning

An educational method where the intensity of a behavior is adjusted by rewards or consequences.