The belief that a cut in the income tax rate must raise government income tax revenue has the implicit assumption that A) higher income tax reduces the number of hours worked. B) higher income tax increases the number of hours worked. C) leisure is always an inferior good. D) None of the above. ANSWER […]
Date: September 9th, 2020
Limited liability is a benefit to A) sole proprietorships. B) partnerships. C) corporations. D) All of the above. ANSWER C
Date: September 9th, 2020
Leisure is an inferior good for Assel. In response to an increase in the wage rate, she will A) supply fewer hours of labor. B) supply more hours of labor. C) enjoy more hours of leisure. D) None of the above. ANSWER B
Date: September 9th, 2020
The nonprofit or not-for-profit sector consists of organizations that A) intend to earn a profit. B) are always inefficient. C) are primarily concerned with the welfare of their own employees. D) typically pursue social or public interest objectives. ANSWER D
Date: September 9th, 2020
In China, firms owned by the government are known as A) state-owned enterprises (SOEs). B) government enterprises. C) corporations. D) government owned partnerships. ANSWER A
Date: September 9th, 2020
Since 1999, the number of small state-owned enterprises (SOEs) in China has A) decreased, but the large SOEs continue to hold a large proportion of industrialized assets. B) increased, but large SOEs has decreased. C) decreased along with the large SOEs. D) remained unchanged. ANSWER A
Date: September 9th, 2020
An increase in unearned income always creates a disincentive to work. Indicate whether the statement is true or false ANSWER False. The effect on labor supply will also depend on the individual’s preferences towards work (leisure).
Date: September 9th, 2020
Which entity produces the greatest proportion of U.S. gross national product? A) government B) non-profit organizations such as hospitals C) firms D) universities ANSWER C
Date: September 9th, 2020
Recent data has shown that income and volunteer time are positively related. Assuming that volunteer time is included in leisure time, what could explain this observation? A) Higher income individuals view leisure as a normal good such that the income effect dominates the substitution effect. B) Higher income individuals view leisure as a normal good […]
Date: September 9th, 2020
What is one of the biggest differences between a sole proprietorship and a corporation? A) Sole proprietorships offer stock. B) Corporation shareholders elect the managers of the firm. C) Sole proprietorships have limited liability. D) Corporations are the only profitable firms. ANSWER B
Date: September 9th, 2020
