Intro to Econ Final #2

Which of the following is a tax deduction?

When demand increases in a market, the equilibrium quantity

Which of the following is NOT a tax deduction or exemption?

A W-2 includes all of the following EXCEPT

The federal government runs a budget deficit when

A price floor (minimum price) will create a

Businesses can lower their tax bill by deducting

When supply decreases in a market, equilibrium quantity

Which of the following is an example of a capital good

If quantity demanded is 40 and quantity supplied is 40, we have

If a surplus of goods develops, what usually happens to the equilibrium price?

When demand decreases in a market, equilibrium price

When supply decreases in a market, equilibrium price

If the government sets a maximum price

If quantity supplied is 100 and quantity demanded is 35, there is a

At the end of the year, each employee receives a _____

If the government sets a minimum price

If quantity demanded is 100 and quantity supplied is 40, there is a

When supply increases in a market, the equilibrium price

A tax in which everyone, regardless of income, pays 15%

What are the two components of the FICA tax?

A price ceiling (maximum price) will create a

Sales tax, where people with low incomes pay a higher percentage of their money when they buy goods and services

Which of the following produces the most revenue for the federal government?

A price at which quantity demanded equals quantity supplied

A W-4 tells an employer

Which tax deducted from your paychecks is supposed to help pay for your health care when you retire?

Shortages in the market cause prices to

Which tax deducted from your paychecks is supposed to help pay for your retirement?

A tax in which people who make 10K pay 10% and people who make 100K pay 20%

In a free market economy, prices will always rise or fall until they reach

Money that the government collects from taxes is called