For Which of the Following Taxes Is There No Ceiling

question 40

Multiple Choice

For which of the following taxes is there no ceiling on the amount of annual employee earnings subject to the tax?

• A) Federal income tax
• B) Federal unemployment tax
• C) FICA SS tax
• D) Charitable contributions tax
• E) State unemployment tax

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Definitions:

Output

Represents the total amount of goods and services produced by an economy over a specific period.

Average Variable Cost

The total variable costs (costs that change with the amount of output produced) divided by the quantity of output produced.

Fixed Cost

Costs that do not vary with the level of output or activity, such as rent or salaries.

Marginal Cost

The increased cost incurred from making one more unit of a product or service.