What type of business has the potential for double taxation of profits and why?
What will be an ideal response?
Corporations earn profits that are taxed at the corporate level and, after dividends are paid to stockholders, then are taxed as personal income.
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Rational ignorance suggests that voters will
A) be ignorant about all issues. B) be ignorant about issues that are of no special interest to them. C) pursue information on all issues before voting. D) avoid voting if they have no information.
An increase in the rate of economic growth curve could be caused by all of the following except
A. a national tax that encourages all employers to provide more training and education for employees which leads to an across-the-board upgrade of the skill level of the nation's workforce. B. a movement along the production possibilities curve so that the society produces more consumer goods and less capital goods. C. an increase in immigration that increases the country's labor force by 20 percent. D. an increase in research and development spending for space technology that improves the quality of the nation's capital stock.
In monopoly:
a. consumers are confronted with a price that is lower than average total cost. b. consumers will buy more of the good than is economically efficient. c. consumers are confronted with a price that is lower than marginal cost. d. a basic condition for efficiency is violated be
When there is an external benefit, the unregulated market
A) overproduces the good or service. B) underproduces the good or service. C) reaches the most efficient solution. D) maximizes public welfare.