The Total Payroll Cost to an Employer of an Employee

question 69

Multiple Choice

The total payroll cost to an employer of an employee who has gross earnings of $78,000 is

• A) $78,000 plus 30 percent.
• B) less than $78,000.
• C) exactly $78,000.
• D) more than $78,000.

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Definitions:

Monopoly and Monopsony

A market structure where a single company dominates the supply side as a monopoly, or the buying side as a monopsony, of a market.

Resource Markets

Markets where productive inputs like labor, raw material, and capital are bought and sold.

Marginal Productivity Theory

A principle stating that the wage paid to a factor of production, such as labor, will equal the additional output or marginal product that the factor produces.

Marginal Productivity Theory

An economic theory that suggests the value of a good or service is determined by the productive resources involved in its production, emphasizing the contribution of each unit of labor or capital.