John provides cheese (H) and milk (M) to the market with the following total cost function C(H, M) = 8 + 0.5H2 + 0.1M2. The prices of cheese and milk in the market are $3 and $4 respectively. Assume that the cheese and milk markets are perfectly competitive. What output of milk maximizes profits?
A. 10
B. 40
C. 30
D. 20
Answer: D
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A) illustrates the important relationship between tax rates and the incentive to labor B) emphasizes the role played by asset price fluctuations on investment spending C) highlights the impact of a tax increase on business investment D) underlines the relationship between financial innovation and the financial crisis of 2007-2009
Tax incidence refers to
A) determining who sends the taxes into the government. B) the tendency of some people to avoid paying taxes at all. C) the distribution of tax burdens among groups, or who really pays a tax. D) determining the marginal tax rate applied to any increase in income.
According to the BLS approximately 8.4 million workers are union members in the private sector and about 7.3 million workers are union members in the public sector.
a. true b. false
Adam Smith believed that if people were free to pursue their own interests.
What will be an ideal response?