Author Question: Social insurance taxes are paid by corporations based on their profits. Indicate whether the ... (Read 77 times)

j.rubin

  • Hero Member
  • *****
  • Posts: 557
Social insurance taxes are paid by corporations based on their profits.
 
  Indicate whether the statement is true or false

Question 2

Explain the difference between consumption and capital goods.
 
  What will be an ideal response?


kingfahad97

  • Sr. Member
  • ****
  • Posts: 308
Answer to Question 1

FALSE

Answer to Question 2

A difference lies in the identity of the purchaser. Consumption goods (and services) are purchased by households and investment goods are purchased by firms. Households buy consumption goods to use for personal enjoyment. They contribute to the person's standard of living. Firms buy capital goods to use as a factor of production. Capital goods are used along with the other factors of production, to help produce additional goods and services.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

Your heart beats over 36 million times a year.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

For a complete list of videos, visit our video library