An Employee Earned $4,300 Working for an Employer

question 148

Multiple Choice

An employee earned $4,300 working for an employer.The current rate for FICA social security is 6.2% and the FICA Medicare rate is 1.45%.The employer's total FICA payroll tax for this employee is:

• A)$62.35.
• B)$266.60.
• C)$328.95.
• D)$657.90.
• E)Zero,since the FICA tax is a deduction from an employee's pay and not an employer tax.

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers, usually downward sloping.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, and easy entry and exit from the market.

Nonprice Competition

A marketing strategy where companies attract customers through methods other than price, such as quality of product, service, or brand image.

Pure Competition

A market condition characterized by a large number of small firms, identical products, and free entry and exit, leading to price-taking behavior.