The incentive to work is an ingredient of the negative income tax because:
A. if families do work, they will be eliminated from the program.
B. if families don't work, they will be eliminated from the program.
C. the more income earned in the workplace, the higher the family's after-tax income.
D. the more income earned in the workplace, the higher the payment from the government.
Answer: C
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Jay set up his hot dog stand near the business district. His total variable cost includes the
A) annual insurance for the hot dog stand. B) cost of buying the hot dog stand. C) cost of the hot dogs and condiments. D) interest he pays on the funds he borrowed to pay for advertising. E) revenue he gets when he sells his first hot dog each day.
Value-maximizing managers will undertake quality improvements only if:
A. the incentive and reward systems are well defined and functional. B. the incremental benefits exceed the incremental costs of enhancement. C. the management overestimates the cost of enhancement. D. the incremental benefits fall below the incremental costs of enhancement.