Alex's Wage Rate Falls

question 241

Multiple Choice

Alex's wage rate falls. Holding everything else constant, Alex's new time allocation budget line will:

• A) shift in toward the origin, parallel to the old one.
• B) shift away from the origin, parallel to the old one.
• C) rotate to the left on the x-axis.
• D) rotate down on the y-axis.

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Definitions:

Quarterly Basis

A time frame used for financial processes, including tax payments and reporting, divided into four equal parts over the year.

FUTA

The Federal Unemployment Tax Act (FUTA) is a United States federal law that imposes a payroll tax on employers to fund state workforce agencies and unemployment insurance.

Medicare Taxes

Taxes that fund Medicare, a federal health insurance program, deducted from the paychecks of employees and also paid by employers.

Wages

Wages refer to the monetary compensation paid by an employer to an employee in exchange for work performed.