The Next Questions Refer to the Following

question 22

Multiple Choice

The next questions refer to the following.
Suppose the supply of labor is W - t = 10H, where W is the gross wage, t is the tax (in dollars) , and H is labor hours. The demand for labor is W = 120 - 2H.
-What fraction of this tax is borne by the workers?

• A) 1/6
• B) 2/6
• C) 3/6
• D) 4/6
• E) 5/6

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Definitions:

Finished Goods Units

Products that have completed the manufacturing process and are ready to be sold to customers.

Sales Budget

A detailed projection of anticipated sales, used for planning and managing resources in a business.

Optimistic Sales Budget

A sales budget that is prepared with the expectation of achieving the best-case scenario in sales volume and revenue.

Excessive Inventories

Situation where a company holds a larger quantity of inventory than necessary, which can tie up capital and increase holding costs.