Which of the following would be classified as a fixed cost for the proprietor who owns and operates the local Texaco station?
A) the federal excise tax paid on each gallon of Texaco gasoline sold
B) the state income tax on the profit earned
C) the rent paid on the 10 year lease for the property on which the station is located
D) the Social Security tax the owner pays the federal government on the owner's income
C
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In computing GDP, it is essential to
A) avoid double counting. B) include government transfer payments. C) include government tax revenues. D) count all intermediate products directly as they are produced.
The existence of a union
A) has no effect on labor supply and demand. B) affects labor supply only. C) affects labor demand only. D) can affect both labor supply and labor demand.
The decision to expand the size of your factory is a long-run decision
Indicate whether the statement is true or false
At which interest rate is the present value of $145.80 two years from today equal to $125 today?
a. 2 percent b. 4 percent c. 6 percent d. 8 percent