-Refer to the Above Figure $P _ { 2 }$ - $\mathrm { P } _ { 0 }$

question 28

Multiple Choice

-Refer to the above figure.A unit tax has been placed on the good.The producer pays what amount of the tax?

• A)None of the tax.
• B) \(P _ { 2 }\) - \(\mathrm { P } _ { 0 }\)
• C) \(P _ { 2 }\) - \(P _ { 1 }\)
• D) \(P _ { 1 }\) - \(\mathrm { P } _ { 0 }\)

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Definitions:

FUTA

The Federal Unemployment Tax Act, a United States federal law that imposes a payroll tax on employers to fund state workforce agencies.

SUTA

State Unemployment Tax Act, a payroll tax paid by employers based on the state unemployment insurance rates and the taxable wages of their employees.

FICA Taxes

Federal Insurance Contributions Act taxes, which are payroll taxes in the United States used to fund Social Security and Medicare programs.