The tax with the minimum excess burden of taxation is most desirable from an efficiency standpoint because _____
a. it suggest that people substituted away from the tax by a considerable amount
b. it minimizes tax shifting
c. it produces the least social cost per dollar of revenue raised
d. it will raise the most revenue for government
c
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Use the following table to answer the next question. Year123456Price Index10095105125125120If output increases by 8% from year 5 to year 6, then in that period ________.
A. real GDP will rise faster than nominal GDP B. real GDP will decrease C. real GDP will rise slower than nominal GDP D. nominal GDP will decrease
Ryan sells 200 plastic ball point pens at $0.50 each. His total costs are $25 . His profits are
a. $25. b. $75. c. $100. d. $175.
Retained earnings
A. Are cheaper than the cost of new common stock B. Have no cost C. Are a firm's cheapest source of funds D. Have a cost that equals the weighted-average cost of capital E. Increase financial leverage
The profit-maximizing level of output for a firm occurs at the point at which
A) P = ATC. B) P = AVC. C) MR = MC. D) MR = ATC.