Multiple Choice
Which of the following could be TRUE given the relationship between a firm's layoffs and its payroll tax for unemployment insurance relative to those of an average firm?
A) Firms with twice as many layoffs pay twice as much in payroll taxes.
B) Firms with twice as many layoffs relative to the average firm pay 50% less in payroll taxes than the average firm.
C) Firms with twice as many layoffs pay 40% more in payroll taxes than the average firm.
D) Firms with twice as many layoffs pay more than twice as much in payroll taxes.
Correct Answer:
Verified
Correct Answer:
Verified
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