Which of the Following Payroll Taxes Do Not Stop Once

question 208

Multiple Choice

Which of the following payroll taxes do not stop once an employee reaches a certain level of income?

• A) Medicare taxes.
• B) Social security taxes.
• C) Unemployment taxes.
• D) Medicare, Social security, and unemployment taxes all have a cap on salaries where the tax ends.

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Definitions:

Optimal Consumption Bundles

Combinations of goods and services that provide the highest utility to a consumer given his or her preferences and budget constraints.

Sardines

Small, oily fish within the herring family of Clupeidae, often canned and eaten by humans.

Marginal Rate

Often referred to as the marginal rate of substitution or the marginal tax rate, indicating the rate at which one can trade off one good for another or the tax rate on the next dollar earned, respectively.

Substitution

Substitution refers to the economic principle where consumers replace more expensive items with less expensive ones or firms replace inputs with cheaper alternatives, in response to changes in price or availability.