Prior to the Last Weekly Payroll Period of the Calendar

question 27

Multiple Choice

Prior to the last weekly payroll period of the calendar year, the cumulative earnings of employees A and B are $99,350 and $91,000 respectively. Their earnings for the last completed payroll period of the year are $850 each. The maximum amount of earnings subject to social security tax at 6% is $100,000. All earnings are subject to Medicare tax of 1.5%. Assuming that the payroll will be paid on December 29, what will be the employer's total FICA tax for this payroll period on the two salary amounts of $850 each?

• A) $127.50
• B) $115.50
• C) $112.50
• D) $0

Recognize the relationship between wage rates, productivity, and employment levels in a competitive labor market.

Describe how shifts in marginal cost and marginal revenue product curves affect firm behavior in both product and labor markets.

Understand the law of diminishing marginal returns and its implications for the marginal revenue product schedule.

Evaluate how changes in technology and labor supply affect the marginal revenue product of labor and the firm's hiring decisions.

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Definitions:

Accountability

The responsibility and obligation to account for one's actions and accept the consequences of them.

Demanded

Expressed or signaled an urgent need or desire for something to be provided or performed.

1990s

The decade spanning from January 1, 1990, to December 31, 1999, marked by significant global events and cultural shifts.

Restructuring

In problem-solving and learning, refers to the process of changing the framework of understanding a problem or concept, often leading to insights or solutions.