The double taxation of corporate profit in the United States refers to the fact that
A) tax rates on partnerships are very high.
B) depreciation is not a deductible expense.
C) corporate profit is first taxed and then any dividends paid are subject to personal income tax.
D) proprietorships are not subject to any tax on earnings.
C
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The aggregate production function
A) measures the productivity of labor as leisure decreases. B) increases only with increases in productivity. C) shows that real GDP can increase because of increased productivity as well as increased labor hours. D) cannot show the impacts of productivity improvements.
Which of the following is not correct?
a. Most people who become unemployed will soon find jobs. b. In an ideal labor market, wages would adjust to ensure that all workers are always fully employed. c. The unemployment rate occasionally falls to zero. d. There are always some workers without jobs, even when the overall economy is doing well.
Elastic supply
What will be an ideal response?
If the MPC is 0.75, the tax multiplier is
A. -2.5. B. -3. C. -4. D. -5.