An income tax _____
a. increases the return to bearing risk, if the company is a monopolist
b. has no impact on the return to bearing risk
c. increases the return to bearing risk
d. reduces the return to bearing risk
d
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An economy in long-run equilibrium experiences an increase in aggregate demand. According to the classical model,
A) the price level will increase, but real GDP will not change. B) the price level and real GDP will increase at the same time. C) the price level will increase, but real GDP will decrease. D) the price level will rise first, then real GDP will increase.
The long-run price elasticity of demand for electricity is ________ the short-run price elasticity of demand for electricity
A) greater than B) less than C) equal to D) not comparable to E) unrelated to
If a 200 billion dollar increase in government spending occurs when the Fed seeks to maintain a fixed interest rate then
A) there is no crowding out, the LM curve shifts to offset the shift in the IS curve. B) there is no crowding out, the monetary policy is fixes as is the LM curve fixed. C) crowding out is assured since monetary policy is fixed. D) crowding out is assured since the Fed will accommodate the spending increases.
If a worker is indifferent between a job with a wage of $10 per hour and a job with a wage of $12 per hour, then the
a. higher-paying job has a compensating wage differential of $2 per hour. b. higher-paying job has a compensating wage differential of $12 per hour. c. higher-paying job is intrinsically more attractive than the lower-paying job. d. wage in the higher-paying job must eventually fall due to competition.