Employer Payroll Taxes

question 4

Multiple Choice

Employer payroll taxes:

• A) Are payable for up to a maximum $117,000 of employee earnings.
• B) Are paid by the employee.
• C) Are added expenses beyond that for the wages and salaries earned by employees.
• D) Represent the social security taxes withheld from employees.
• E) Represent the federal taxes withheld from employees.

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Definitions:

Natural Monopoly

A market condition in which a single supplier is more efficient in producing the product than any other potential producers due to high fixed or startup costs.

Electricity

A form of energy resulting from the existence of charged particles, used as a power source.

Profit-Maximizing Quantity

The production level where a firm reaches its maximum profit.

Monopoly Model

An economic model describing a market structure where a single seller controls the entire market supply, setting prices without competition.