Efficient production occurs if a firm A) cannot produce its current level of output with fewer inputs. B) given the quantity of inputs, cannot produce more output. C) maximizes profit. D) All of the above. ANSWER D
Date: September 9th, 2020
Suppose a person’s utility for leisure (L) and consumption (Y) can be expressed as U = Y L and this person has no non-labor income. Assuming a wage rate of $10 per hour, show what happens to the person’s labor supply when the person wins a lottery prize of $100 per day. What will […]
Date: September 9th, 2020
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
