________ choose the quantities of factors of production to hire and ________ choose the quantities of goods and services to produce
A) Markets; markets
B) Firms; households
C) Factor markets; goods markets
D) Entrepreneurs; firms
E) Firms; firms
E
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A study by the Congressional Budget Office (CBO) regarding the corporate income tax included the following statement: "A corporation may write its check to the Internal Revenue Service for payment of the corporate income tax, but the money must come
from somewhere..." The comments that followed this statement argued that A) corporations pass on some of the burden of the tax to investors in the company, to workers, and to consumers. B) it is necessary to retain the tax because it is based on the ability-to-pay principle. C) the corporate income tax is a reliable source of revenue because corporations cannot avoid paying the tax. D) the tax is more progressive than the individual income tax.
For a given increase in price, the greater is the elasticity of supply, the greater is the resulting a. decrease in quantity supplied. b. decrease in supply
c. increase in quantity supplied. d. increase in supply.
A toy manufacturer is experiencing quality problems on its assembly line. Every defective toy that leaves the factory costs the firm $20. The firm has decided to hire quality inspectors to catch defective toys before they leave the factory.
Given the above information, if each inspector is paid $100 a day, how many inspectors should the firm hire to minimize the total cost of defective toys?
A. 3 B. 4 C. 5 D. 6
The following are all determinants of income differences examined in the text EXCEPT
A. age. B. inheritance. C. marginal productivity. D. height.