An increase in income tax rates will
A) make it more expensive for an entrepreneur to purchase a tax deductible luxury automobile for business purposes.
B) make it less expensive for a successful lawyer to attend a tax deductible professional meeting in Hawaii.
C) improve the efficiency of resource use.
D) increase the incentive of the spouse of a highly successful lawyer to work and earn additional income.
B) make it less expensive for a successful lawyer to attend a tax deductible professional meeting in Hawaii.
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Business taxes increase. What is the impact on aggregate expenditures and income?
A) Both increase. B) Both decrease. C) Aggregate expenditure increases and income decreases. D) Aggregate expenditure decreases and income increases.
In the short run, which are most important in determining changes in output?
A. Marginal cost and marginal revenue B. Total costs and revenue C. Average cost and average revenue D. Fixed costs
A physician's office expenses increase 10 percent, so she decides to raise the price of office visits. Assuming the demand curve for office visits does not shift, what will happen to the total number of office visits and practice revenues?
a. Office visits and total revenue stay the same if demand is elastic. b. Office visits and total revenue rise if demand is inelastic. c. Office visits and total revenue fall if demand is inelastic. d. Office visits will fall and total revenue will rise if demand is inelastic. e. Office visits will rise and total revenue will fall if demand is elastic.
types of specialized investments
What will be an ideal response?