2. (30 minutes) Suppose the IRS in question 1 can commit to a probability of auditing the return
before the taxpayer lls out his return, and that the taxpayer observes this probability. (This
commitment may involve the early hiring
1. (30 minutes) Suppose the government (through its agency, the Internal Revenue Service IRS)
wants to ensure compliance with the tax code. A taxpayer, in lling out a tax return, has two
choices, be truthful (T) or lie (L). The IR
Entrepreneurship quiz part 2
A salary-substitute firm
Small firms that afford their owner(s) a similar level of income to what they would earn in a
conventional job. Retail stores.
A lifestyle firm
Firms that provide their owner(s) the opportunity to purs
Entrepreneurship quiz part 1
What are the characteristics of entrepreneurs and entrepreneurial firms?
What influences the decision to become an entrepreneur?
Why is entrepreneurship important?
What is an Entrepreneur?
People who take on the risk bet