Refer to the Information Provided in Figure 14

question 116

Multiple Choice

Refer to the information provided in Figure 14.2 below to answer the questions that follow.
Figure 14.2
-Refer to Figure 14.2.The equilibrium wage rate is $________ and the equilibrium number of people employed is ________ million people.

• A)15; 270
• B)9; 210
• C)15; 150
• D)6; 180

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Definitions:

Average Tax Rates

The ratio of the total amount of taxes paid to the total income, indicating the percentage of income that goes towards taxes.

Regressive Tax

A tax system that takes a smaller percentage of income from individuals as their income increases, often considered less fair to lower-income earners.

Payroll Taxes

Financial obligations required from both employers and employees, pegged to a fraction of the payroll expenses incurred by employers.

Federal Tax Revenues

The income received by the federal government from taxes and other sources used to fund public expenditures.