Final answer:
Firms with twice as many layoffs pay more than twice as much in payroll taxes. Firms with twice as many layoffs could pay more or less than twice as much in payroll taxes for unemployment insurance, depending on the specifics of the tax structure. The correct answer is B.
Step-by-step explanation:
Based on the information provided, the statement that could be true is 'Firms with twice as many layoffs pay more than twice as much in payroll taxes.'
This is because the relationship between a firm's layoffs and its payroll tax for unemployment insurance is not linear. If a firm has twice as many layoffs, it may not necessarily pay twice as much in payroll taxes. The actual amount of payroll taxes paid may depend on various factors, such as the specific tax rate and any exemptions or reductions that may apply.
For example, a firm with twice as many layoffs may still have a significant proportion of its workforce employed and thus contribute a considerable amount in payroll taxes. However, the specific calculations will depend on the tax regulations and policies in place.
Firms with twice as many layoffs could pay more or less than twice as much in payroll taxes for unemployment insurance, depending on the specifics of the tax structure.
The correct answer to the question of 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 is that firms with twice as many layoffs could pay either more or less than twice as much in payroll taxes. However, there is not enough information provided to determine which of the four options is definitively true without additional context about the payroll tax structure. Unemployment insurance tax rates can be experience-rated, which means the rate can increase for firms with more layoffs, so a firm with twice as many layoffs could possibly pay more than twice as much in taxes. However, there may also be caps or limits to the tax rate or tax amount, meaning even with more layoffs, a firm might not pay proportionally more in taxes.