Critics of an equal distribution of income argue that the effect would be to reduce the incentive to be productive
a. True
b. False
Indicate whether the statement is true or false
True
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The concept of limited liability
A) does not apply to a corporation. B) means that the owners of a corporation have liability limited to the value of the shares in the firm. C) means that owners of a firm are subject to double taxation. D) limits the amount of specialization that can occur in a firm.
Which of the following will shift the short-run industry supply curve of a perfectly competitive industry?
A. an increase in demand for the product B. an increase in consumer income C. an increase in the price of the product D. a decrease in the price of an input
Assuming all else equal, if a household is optimistic about future income, it is likely to cause:
A) the current credit supply curve of the household to shift to the left. B) an upward movement along the current credit supply curve of the household. C) the current credit supply curve of the household to shift to the right. D) a downward movement along the current credit supply curve of the household.
A firm will expand the amount of output it produces as long as its
A) average total revenue exceeds its average total cost. B) average total revenue exceeds its average variable cost. C) marginal cost exceeds its marginal revenue. D) marginal revenue exceeds its marginal cost.