The Amount of Goods and Services Produced from Each Hour

question 98

Multiple Choice

The amount of goods and services produced from each hour of a worker's time is called

• A)total output.
• B)productivity.
• C)marginal product.
• D)efficiency.

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Definitions:

Depreciation Tax Shield

The reduction in income tax expense realized from the ability to deduct depreciation expenses, thus lowering taxable income.

Marginal Tax Rates

The rate of tax applied to the next dollar of taxable income, which varies depending on income level and filing status in a progressive tax system.

Lease Payments

Regular payments made by a lessee to a lessor for the use of some asset.

After-Tax Lease Payment

The lease payment amount minus any tax savings resulting from deductible lease expenses.