If it turned out that labor supply was relatively elastic then who would bear the greater burden of the payroll tax and why?
What will be an ideal response?
If labor supply is relatively elastic then the burden will fall largely on employers. This is because workers will simply respond by offering a greater percentage less of their labor to the market with any given decline in the wage rate.
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The process a firm uses to turn inputs into outputs of goods and services is called technology
Indicate whether the statement is true or false
Consumer sovereignty implies that
a. producers determine what goods will be produced and consumers are free to choose from among them b. consumers choose the composition of our economy's output c. goods are produced on the basis of need d. the government directs the production of consumer goods in the economy e. a committee of consumers determines the key issues in the economy
Economies of scale tend to create natural monopolies.
Answer the following statement true (T) or false (F)
Competition forces firms to produce and sell products as long as the ________ to consumers exceeds the ________ of production
A) marginal benefit; marginal cost B) marginal benefit; marginal benefit C) marginal cost; marginal cost D) marginal cost; marginal benefit