Suppose employers and workers are risk-neutral, and congress is about to enact the $12 per hour minimum wage. congressional staff economists have urged legislators to consider adopting an earned-income tax credit instead. suppose neither workers nor employers would support that proposal unless the expected value of each party’s economic surplus would be at least as great as under the minimum wage. describe an earned-income tax credit.

In the context of your career choice, your own business skills cannot influence the level of your personal financial success. a. true b. false

If we know that a firm has a net profit margin of 4.6 %, total asset turnover of 0.62, and a financial leverage multiplier of 1.54, what is its roe? what is the advantage to using the dupont system to calculate roe over the direct calculation of earnings available for common stockholders divided by common stock equity?

Self-interest achieve society’s economic goals because producers know which goods consumers want the most. as consumers and producers exercise their freedom to act in their own self-interest, markets will produce the desired goods at the lowest possible cost. consumers and producers both operate based on society’s economic goals. consumers know which goods can be produced at the lowest cost. there is a wide variety of desired goods and services in a market system because producers determine what to produce. consumers change their minds frequently. there is always a need to produce something new and improved. individual wants are diverse. what is produced is ultimately determined by consumers, because if the goods offered are not what consumers want, consumers will not buy them. producers, because they are driven by profits. producers, because they determine what to produce. consumers, because they participate in marketing surveys.