Which of the Following Is False Under the Federal Unemployment

question 85

Multiple Choice

Which of the following is false under the Federal Unemployment Tax Act?

• A) It was passed in 1935 and created a state system to provide unemployment compensation to qualified employees who lose their jobs.
• B) Employers must pay taxes to the states, which deposit the money into the federal government's Unemployment Insurance Fund.
• C) Each state has an account from which it can access the money in the federal fund.
• D) States have different minimum standards for qualifying for unemployment compensation.
• E) Most states do require employee contributions.

---

Definitions:

Government Budget

A financial statement presenting the government's projected revenue and spending for a specific fiscal period, outlining planned financial operations and priorities.

Allocative Efficiency

A state of the economy where resources are allocated in a way that maximizes the utility or satisfaction of consumers.

Consumer Surplus

The discrepancy between the aggregate sum consumers are prepared and can afford to spend on a product or service and the actual total amount they end up paying.

Coase Theorem

A principle that if property rights are clearly defined and transaction costs are low, private bargains will ensure that the market always reaches an efficient outcome regardless of who holds the initial property rights.