What is production? What economic factors are involved in production?
What will be an ideal response?
Production involves any activity that converts resources into goods and services that can be consumed. Production requires the use of all kinds of resources—natural resources, capital, and human resources, so the owners of all these resources are involved with production.
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Discuss how a politicians "policy differentiation" from his opponent in an election softens the competition over how much in political rents the politician will be able to collect.
What will be an ideal response?
A perfectly inelastic demand means:
A. consumers will change the quantity they purchase when price changes. B. demand will drop to zero if the price increases by any amount. C. consumers will not change the quantity they purchase when price changes. D. the demand curve is perfectly horizontal.
Refer to Figure 4-15. As a result of the tax, is there a loss in consumer surplus?
A) No, because the producer pays the tax. B) No, because the market reaches a new equilibrium C) No, because consumers are charged a lower price to cover their tax burden. D) Yes, because consumers pay a price above the economically efficient price.
The primary objective of multinational tax planning is to minimize the firm's worldwide tax burden.
a. true b. false