Which of the Following Is NOT True

question 86

Multiple Choice

Which of the following is NOT true?

• A) The consumer price index does not account for product substitutions well.
• B) The consumer price index does not account for all goods and services consumed by households.
• C) The consumer price index is a cost-of-living index.
• D) The consumer price index measures inflation.

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Definitions:

State Unemployment Taxes

Taxes imposed on the employer by states that provide benefits to employees who lose their jobs.

Employee's Withholding

The portion of an employee's wages withheld by the employer for payment of taxes and other deductions.

Federal Unemployment Tax

A United States federal tax imposed on employers to fund state workforce agencies. Employers pay this tax to the Internal Revenue Service (IRS) to cover the costs of unemployment compensation to workers who have lost their jobs.

Wage And Tax Statement

A document, often referred to as a W-2 form, issued by employers to employees detailing the employee's wages and taxes withheld during the year.