In the long run, an increase in the individual income tax rate with no change in the corporate profits tax will lead to ________ profits in the corporate sector and ________ profits in the noncorporate sector.
A. lower; higher
B. lower; lower
C. higher; higher
D. higher; lower
Answer: C
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A demand schedule shows
A) the quantities that people plan to buy at each different income when all other influences on buying plans remain the same. B) the quantities that people would plan to buy if they could afford them at each different price when all other influences on buying plans remain the same. C) the quantities that people plan to buy at each different price when all other influences on buying plans remain the same. D) the quantities that people plan to buy in all possible circumstances. E) the quantities that people plan to buy at each different price as long as producers are willing to supply that quantity.
Total cost includes
A) the cost of variable resources only. B) the cost of fixed resources only. C) the cost of both variable and fixed resources. D) the cost of neither variable nor fixed resources. E) all explicit costs and all the implicit costs that actually must be paid using money.
Refer to the above figure. The figure represents the consumption function for a consumer. Point D represents
A) autonomous consumption. B) saving. C) dissaving. D) zero saving.
Which of the following are injections into the circular flow of income?
a. saving, investment, exports, and taxes b. investment, taxes, and imports c. saving, taxes, and imports d. investment, government spending, and exports