If Firms Have to Change Their Production Techniques in Order

question 84

True/False

If firms have to change their production techniques in order to change the quantities they supply,they can respond less in a year to a price change than they could in a month.

---

Definitions:

Federal Income Tax

The annual income of individuals, corporations, trusts, and other legal entities is subject to a tax imposed by the IRS.

FICA Tax Rate

The combined percentage rate for Social Security and Medicare taxes that both employees and employers must pay based on earned income.

Hourly Wage

Compensation based on the number of hours worked, typically paid to employees on an hourly rather than salary basis.

FICA Tax

In the United States, mandatory deductions from employees' salaries to support Social Security and Medicare, known as federal taxes.