Besides the fact that the elderly are often on fixed incomes can you think of another reason why most local taxing authorities grant homeowners aged 65 and older school tax exemptions?
What will be an ideal response?
Typically a school tax would fit under the benefits-received principle of taxation. However, the elderly are not likely to have school-age children living at home. Therefore the benefits-received principle is weakened in this case.
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Which of the following statements is correct?
A) Arc elasticity of demand is the same as the slope of the demand curve. B) Arc elasticity of demand only applies to a nonlinear demand curve. C) Point elasticity of demand is measured at each point along a demand curve. D) Point elasticity of demand is measured between two adjacent points on a demand curve.
Suppose a monopolistically competitive firm is producing at the profit-maximizing output level and is receiving a price that is sufficient to cover only its average variable cost. If the price falls further the firm should suspend its operations
a. True b. False Indicate whether the statement is true or false
Brittany must write a political science term paper and prepare for an economics exam. The production possibilities curve between political science and economics preparation is a straight line. As time spent studying economics increases, the opportunity cost of studying for economics: a. increases
b. remains the same. c. decreases. d. first increases then decreases.
Consider the Cobb-Douglas production function F(L,K) = AL?K?. Suppose that ? = 2, ? = 3, the firm has 3 units of capital and the firm's general productivity level is 20. (a) What is the firm's long-run production function? (b) What is the firm's short-run production function? (c) If the firm employs 10 workers, what are the marginal products of labor and capital? (d) If the firm employs 10 workers, what is the marginal rate of technical substitution for labor with capital? (e) Does this firm's technology exhibit increasing, decreasing or constant returns to scale?
What will be an ideal response?