The Less Freedom People Are Given to Choose the Date

question 43

Multiple Choice

The less freedom people are given to choose the date of their retirement,the

• A)more elastic is the supply of labor.
• B)less elastic is the supply of labor.
• C)flatter is the labor supply curve.
• D)smaller is the decrease in employment that will result from a tax on labor.

Calculate the net advantage to leasing (NAL) for various assets considering tax rates, depreciation, interest rates, and lease payments.

Recognize the role of tax shields in lease versus buy decisions, specifically in relation to depreciation and Capital Cost Allowance (CCA).

Evaluate the impact of asset obsolescence, temporary need, and restrictive covenants on the decision to lease or buy.

Understand how leasing transfers uncertainty about asset value and future market conditions from the lessee to the lessor.

---

Definitions:

Intelligence

The ability to acquire and apply knowledge and skills, and to reason, solve problems, and adapt to new situations.

Genetically Inherited

Traits, characteristics, or conditions passed from parents to offspring through genes, encompassing physical attributes, health conditions, and some behaviors.

High School Completion

The act of meeting all the required standards and requirements to graduate from high school successfully.

Blacks

A term often used to designate individuals and communities of Sub-Saharan African descent, acknowledging social and cultural identity in a racial context.