Answer:
Increasing progressive taxes in order to redistribute income may be seen as a fair and noble thing, but such measure may have several unintended consequences.
Explanation:
One consequence is that if taxes are raised too high on the highest earners, these people may simply leave the country for another one where taxes are lower. Wealthy people have the means to do so in the modern economy.
Another consequence would occurr if the taxes are raised too high on corporations. Corporations may either leave the country as well, or pass through the higher costs to the consumers.
All in all, progressive taxation is seen as a fair system by many economists, but it should be implemented with care, and by making cost/benefit analysis first.
Answer:
Option A
Explanation:
workers and firms will strike bargains for higher wages. This increase in wages shifts the short-run aggregate supply curve left.
Answer:
A) the ratio of output to the number of workers used to produce that output.
Explanation:
As per definition, the average product of labor = Total Output/Number of workers employed
.
All the other choice involve the change in total cost/revenue/output which means it will be Marginal and not average.
Answer: 20 units.
Explanation:
Given that,
Inverse demand curve: P = 420 - 2Q
There are five firms and each of the firm has a constant marginal cost.
Marginal cost (MC) = 20
Profit maximizing output is produced by the firms is at a point where the marginal cost is equal to marginal revenue.
P = 420 - 2Q
Total revenue(TR) = PQ
= 420Q - 2
Differentiating TR with respect to 'Q'
Marginal revenue(MR) = 420 - 4Q
MR = MC
420 - 4Q = 20
Q = 
Q = 100
Therefore, output produced by the industry is 100 units.
Per-firm production = 
= 
= 20 units
Hence, each firm produces 20 units.
Answer:
C. Periodic payments made to both are tax deductible for the company.
Explanation:
Interest expense is tax deductible and dividends are not tax deductible.
This is because, interest is an expense charged to income statement and paid on debt, which is a compulsory payment.
Whereas, when we discuss about payment of dividend it is paid as part of retained earnings, as this is paid from retained earnings which is balance of net income added after tax to retained earnings.
Therefore, the statement which is false
C. Periodic payments made to both are tax deductible for the company.
