Since the increasing level of government transfers only transfers the wealth without actual creation of goods/services, Higher taxes may be necessary to finance increased transfer payments, leading to a reduction in hours worked because of a decrease in the reward for productive activity. Not only that, <span>.Greater transfer activity diverts productive resources into rent-seeking activity</span>
Answer:
The answer is D.
Explanation:
Total earnings in 4 years
= 6000 + 3000 + 6000 - 2000
= $13,000
Ending retained earnings after 4 years
= $10,000
Total amount paid out as dividend in 4 years
= $13,000 - 10,000
= $3,000
Average amount of dividends paid per year
= $3,000/4
= $750
Answer:
A university's decision to add a new residence hall. A trucking firm's decision to move to a smaller facility.
Explanation:
Short run decision affects variable factor only. Adding a new facility is a long run decision. Hence a firm's decision to decrease the amount of electricity used in day-to-day operations by encouraging employees to adopt conservation strategies is a short run decision.
Hence, the correct answer would be:
A university's decision to add a new residence hall. A trucking firm's decision to move to a smaller facility.
