The Social Security retirement program is financed by a 10.6 percent payroll tax that applies to earnings up to an income cutoff that is adjusted upward annually by the growth rate of nominal wages. As of 2013, the income cutoff was

A firewood supplier has a very seasonal demand for its product. Its transport trucks lay idle during the warmer parts of the year. It can exploit economies of scope if

a. It merges with a manufacturer of wooden Christmas ornaments b. It turns into a rental trucking company during the warmer months for other seasonal producers such as ice-cream makers c. It starts producing other seasonal products that would sell mostly during the warmer months such as rustic lawn chairs d. B and C

If the price of film increases, the demand for film processing would decrease; moreover, the equilibrium price and quantity of film processing should also decrease

a. True b. False