Which of the Following Statements Is True About FICA Social

question 75

Multiple Choice

Which of the following statements is true about FICA Social Security and Medicare?

• A) Employers match the employee's deduction for FICA Medicare but pay a higher percentage for FICA Social Security.
• B) Only employees have this deduction.
• C) Only employers are responsible for FICA taxes.
• D) Both FICA Social Security and Medicare have no wage ceilings.

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Definitions:

Marginal Revenue

The extra revenue generated from the sale of an additional unit of a product or service.

Deadweight Loss

The reduction in total surplus that results from a market distortion, such as a tax, subsidy, or price control.

Society's Welfare

A measure of the overall well-being and quality of life of the members of a society, often considered in economic terms but also including factors like health, education, and environmental quality.

Monopolist

An entity that is the sole provider of a particular product or service in the market, having significant control over pricing.