1. Which is the correct order of importance in terms of revenue collected among the following federal taxes?
a. (1) corporate income taxes (2) value-added taxes (3) excise taxes
b. (1) personal income taxes (2) corporate income taxes (3) sales taxes
c. (1) payroll taxes (2) personal income taxes (3) federal excise taxes
d. (1) personal income taxes (2) payroll taxes (3) corporate income taxes
2. The marginal productivity principle says that a profit-maximizing firm should
a. hire capital until its marginal product is zero.
b. hire labor until another worker costs more to hire than she can earn for the firm.
c. hire the quantities of capital and of labor at which their marginal products are equal.
d. hire capital until its marginal product is negative.
3. An employer would never operate on the upward-sloping part of an MRP curve because
a. he would not be maximizing profits.
b. he would be hiring workers at wages above MRP.
c. the number of workers is too large to get economies of scale.
d. he would then have too little capital per worker.