Which of the Following Items Is Not Included on an Employee's

question 40

Multiple Choice

Which of the following items is not included on an employee's Form W-2?

• A)Taxable wages, tips, and compensation
• B)Social Security withholding
• C)Value of stock options granted during the year
• D)Federal and state income tax withholding

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Definitions:

Marginal Product

This measures the additional output that is produced by adding one more unit of a specific input, keeping all other inputs constant.

Total Output

The entire quantity of goods or services produced by an individual, firm, industry, or economy within a specified period.

Implicit Costs

Costs that represent the value of resources used in production for which no direct payment is made.

Explicit Costs

Direct, out-of-pocket payments a firm makes to purchase the inputs it needs for production, such as wages, rent, and materials.