If a and B Are Complements and the Cost of a Factor

question 131

Multiple Choice

If A and B are complements and the cost of a factor of production used in the production of A decreases,then the price of

• A)both A and B will rise.
• B)both A and B will fall.
• C)A will fall and the price of B will rise.
• D)A will rise and the price of B will fall.
• E)A will fall and the price of B will remain unchanged.

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Definitions:

Average Tax Rate

The proportion of total income that is paid as taxes, calculated by dividing the total taxes paid by the total taxable income.

Federal Personal Income Tax

A tax levied by the federal government on the income of individuals, adjusted for various deductions and exemptions.

Personal Income Tax

A tax levied on individuals or households based on the level of their income.

Taxable Income

The amount of income used to calculate how much tax an individual or a company owes to the government, after deductions and exemptions.