An Employee Earned $37,000 During the Year Working for an Employer

question 94

Multiple Choice

An employee earned $37,000 during the year working for an employer when the maximum limit for Social Security was $118,500. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee's annual FICA taxes amount is:

• A) $2,830.50.
• B) $1,757.50.
• C) $8,950.50.
• D) $536.50.
• E) $2,294.00.

Understand the concept of yield curves and their implications for the bond market and interest rate environment.

Understand the concept and calculation of the marginal propensity to save (MPS) and its economic implications.

Grasp the effects of changes in autonomous investment on the economy's equilibrium and the concept of the spending multiplier.

Comprehend how current production levels relative to planned expenditure affect inventories and production decisions.

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