The main reason that firms adjust their output when the price level changes is that
a. uncertainty causes a drop in output.
b. taxes cause a supply-side reaction.
c. their profit margins change.
d. increased risks lead to a change in output.
e. All of the above are correct.
c
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What is the threshold age for individuals to be considered as being in the "labor force" for statistical purposes?
A) 16 B) 18 C) 21 D) Over 21
An income tax system in which the average tax rate decreases with the level of income is called a
A) progressive income tax system. B) proportional income tax system. C) regressive income tax system. D) flat-rate income tax system.
A firm will tend to select the least costly input combination to produce its output.
Answer the following statement true (T) or false (F)
Economists assume that individuals make informed decisions and act in their own self-interest.
Answer the following statement true (T) or false (F)