When Two Goods Are Perfect Substitutes, the

question 57

Multiple Choice

When two goods are perfect substitutes, the

• A)indifference curve is a downward-sloping straight line.
• B)marginal rate of substitution is constant.
• C)indifference curve is a vertical straight line.
• D)Both a and b are correct.

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Definitions:

IRS Form 940

A form used by employers in the United States to report their annual Federal Unemployment Tax Act (FUTA) tax.

Federal Unemployment Tax

A tax imposed on employers to fund state workforce agencies. Employers pay this tax to finance the unemployment compensation to workers who have lost their jobs.

Income Taxes

Taxes imposed by the government on the income generated by businesses and individuals.

Independent Contractors

Workers who provide services to a business under terms specified in a contract, not considered as employees of the company.