A change in the price of one good results in a rotation of the budget line, so that it is steeper or flatter

Taxes are one method of funding the poverty alleviation programs by the government. Which of the following is an important impact of taxes?

a. Taxes increase workers' incentives to work for longer hours. b. Taxes raise the disposable income of the workers. c. Imposition of taxes makes the government popular among the people. d. Taxes reduce the opportunity cost of leisure. e. Taxes reduce the demand for labor.

A profit-maximizing firm will use additional units of resources for production until:

A. Total, average, and marginal cost are equal B. Total, average, and marginal revenue are equal C. The marginal revenue product equals the marginal resource cost D. The marginal revenue product is greater than the marginal resource cost