Considering the value of a financial instrument, the bigger the size of the promised payment the:
A. less valuable the financial instrument because risk must be greater.
B. longer an investor has to wait for the payment.
C. greater the risk.
D. more valuable the financial instrument.
Answer: D
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A tax credit
A. is not the same as a tax deduction. B. is another phrase for a tax deduction. C. is never calculated on federal tax returns. D. only applies to the EITC.
For a monopoly,
a. price and output are closely-linked choices b. marginal revenue always exceeds marginal cost c. price always exceeds average total cost in the short run d. price is set independently from the output decision e. price is always the highest that the market will bear
Current income maintenance programs
A) often provide benefits to people who are working and earning substantially more than the poverty level. B) reduce the incentive of recipients to work. C) have safeguards to ensure that recipients work whenever physically able. D) fail to make the income distribution more equal.
When a company produces 5,000 units, total costs equal $150,000 and total variable costs equal $75,000. At this level of output, what is that company average fixed cost?
A) $75,000 B) $30 C) $225,000 D) $15