In making a short-run profit-maximizing production decision, the firm must consider both fixed and variable cost
a. True
b. False
Indicate whether the statement is true or false
False
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Personal income equals personal disposable income plus
a. payroll taxes. c. transfer payments. d. dividend payments. d. personal saving. e. personal taxes.
Which organization is committed to lowering trade barriers?
a. the United Nations b. the World Bank c. the World Trade Organization d. the International Monetary Fund
A doorknob manufacturer sells 400 doorknobs at a price of $10 each. It has total costs of $4,500, of which $700 are fixed costs. This means the firm
a. has an economic profit of $500 b. should produce in the short run at a loss c. should shut down in the short run d. has total variable costs of $500 e. has price less than average variable cost
The main difference between direct and indirect taxes is that
A. indirect taxes are automatically deducted from workers’ paychecks and direct taxes are not. B. direct taxes are paid to state and local governments and indirect taxes are paid to the federal government. C. direct taxes are taxes levied on people and indirect taxes are taxes levied on activities undertaken by people. D. direct taxes are usually proportional and indirect taxes are usually progressive.