-If the Economy in the Diagram Above Is Open to Trade

question 103

Multiple Choice

-If the economy in the diagram above is open to trade and the world price of oil is $30 per barrel,then domestic production of oil equals ________ million barrels and domestic consumption of oil equals ________ million barrels.

• A) 6;11
• B) 11;11
• C) 11;16
• D) 16;6
• E) 6;16

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Definitions:

State Unemployment Credit

A tax credit offered to employers by the state, related to unemployment insurance payments.

FUTA Purposes

Relates to the Federal Unemployment Tax Act, which imposes a payroll tax on businesses to fund state workforce agencies.

Federal Income Tax

This is a tax levied by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Withholding Allowances

Claims made on an employee's W-4 form that determine the amount of federal income tax withheld from their paycheck.