Shift to the left or right for supply: business taxes decrease or subsidaries increase
What will be an ideal response?
right
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In what type of analysis could an increase in the tax rate lead to a decrease in tax revenues?
A) ad valorem taxation B) excise taxation C) dynamic tax analysis D) static tax analysis
Suppose the price index is 100 in the base year and the price of a pound of oranges in that year is $1.96 . Now, if the price index changes to 105 in the following year, how much would a pound of oranges cost?
a. $2.45 b. $0.25 c. $1.96 d. $2.06 e. $1.50
From uncovered interest parity, we know that when the domestic currency is expected to depreciate, the domestic interest rate should be:
a. greater than the foreign interest rate. b. greater than the foreign exchange rate. c. less than the foreign interest rate. d. less than the foreign exchange rate.
If a firm has a total fixed cost of $75 and an average variable cost of $35 for producing 10 units of output, the average total cost would be:
a. $425. b. $42.50. c. $110. d. $350.