The demand for labor is described as a derived demand because
A) it is derived from the demand for products that use labor in the production process.
B) it is derived by workers seeking to earn income to fund the consumption of goods and services.
C) it is derived from government institutions which rely on labor markets for the purpose of raising tax revenue.
D) it is derived by producers seeking to make profits by starting new businesses.
A
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Value added taxes _____
a. have the same tax base as a consumption tax b. have the same tax base as an estate tax c. have the same tax base as a retail sales tax d. have the same tax bas as an income tax
Consider the following statements:
a. Soda drinkers purchase more soda from a grocery store that sells soda at a lower price than other rival grocery stores in the area. b. Homeowners do not take steps to increase security even though they believe it is more costly to allow burglaries than to install security monitoring equipment. c. Manufacturers produce less of a particular cell phone when its selling price rises. Which of the above statements demonstrates that economic agents respond to incentives? A) a only. B) b only. C) c only. D) a and b. E) a, b, and c.