The price of any factor of production in a competitive market depends on the value of the final product it is used to produce.
Answer the following statement true (T) or false (F)
True
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What is productivity? How does a country's standard of living relate to productivity?
What will be an ideal response?
Vertical equity incorporates the notion that
A. those earning higher incomes should pay more in taxes. B. those earning equal incomes should pay the same in taxes. C. taxes paid should be unassociated with income levels. D. there should be no excess burden created by a tax.
If average costs of production decline with increases in output for a particular firm:
a. many small firms will be more efficient than a single large firm. b. one large producer will be more efficient than many small producers. c. product diversification is necessary to spread the overhead. d. diseconomies of scale become significant as output increases. e. the variable cost of production must exceed the fixed costs.
An economist who is most likely to believe that people will never find $200 lying on the street is referred to as:
A. a mathematical economist. B. an engineering economist. C. a traditional economist. D. a modern economist.