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Author Question: Social insurance taxes are paid by corporations based on their profits. Indicate whether the ... (Read 75 times)

j.rubin

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on: Jun 30, 2018
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?
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kingfahad97

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Reply #1 on: Jun 30, 2018
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.


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