For a firm that is competitive in both product and factor markets, the value of the marginal product of labor:
a. is constant and equal to the market wage
b. increases, causing the labor supply curve to slope upward.
c. declines because the marginal product of labor diminishes as the number of workers rises.
d. declines because a competitive firm must lower product price in order to increase sales.
c
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Which of these is a disadvantage of issuing stock relative to bonds?
A virtue of income taxes over sales taxes is that _____
a. they are more comprehensive b. they are more difficult to avoid c. the excess burden of an income tax system is far smaller d. progression can be built into the system
Refer to the information provided in Figure 27.1 below to answer the question(s) that follow.
Figure 27.1Refer to Figure 27.1. Suppose the economy is at Point A, a decrease in taxes can cause a movement to Point
A. E. B. B. C. C. D. D.
There would be ________ excess burden from a tax if demand were perfectly inelastic.
A. a 100 percent B. no C. an evenly shared D. a negative