The sole proprietor has the right to deduct business losses on his individual tax return.

The link between employees' performance and pay is hardest to establish in

A) piece rate plans.
B) merit pay plans.
C) standard hour plans.
D) stock ownership plans.
E) Scanlon plans.

Which of the following represent examples of adverse selection?

A) Unhealthy people are more likely to want health insurance.
B) Careless drivers purchasing extra auto insurance.
C) Risk averse individuals choosing to buy extra insurance.
D) all of the above
E) A and B only

A depression can be defined as:

A) a mild reduction in total production coupled with a rising unemployment rate that lasts for several years.
B) a mild decline in total production that lasts less than six months.
C) a severe fall in stock prices that causes financial panic and lasts for several years.
D) a severe reduction in total production coupled with high unemployment that lasts for several years.
E) a decline in government spending and taxes that lasts for several months.

A manager of a cost center is evaluated mainly on

A) the profit that the center generates.
B) his or her ability to control costs.
C) the amount of investment it takes to support the cost center.
D) the amount of revenue that can be generated.

Refer to Table 12-9. Does the tax system achieve vertical equity?