One disadvantage of corporations is the double taxation of income to the owners
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Figure 4-6. At the price P2, consumers are willing to buy the Q2 pounds of granola. Is this an economically efficient quantity?
A) Yes, otherwise consumers would not buy Q2 units. B) Yes, because the price P2 shows what consumers are willing to pay for the product. C) No, the marginal benefit of the last unit (Q2 ) exceeds the marginal cost of that last unit. D) No, the marginal cost of the last unit (Q2 ) exceeds the marginal benefit of the last unit.
If large budget deficits push government debt as a share of the economy to higher and higher levels, this will eventually lead to
A) higher interest rates on the government's bonds because it will be less risky to loan the government funds. B) higher interest rates on the government's bonds because it will be more risky to loan the government funds. C) lower interest rates on the government's bonds because it will be less risky to loan the government funds. D) lower interest rates on the government's bonds because it will be more risky to loan the government funds.
Suppose that the salary range for recent college graduates with a bachelor's degree in economics is $30,000 to $50,000, with 25 percent of jobs offering $30,000 per year, 50 percent offering $40,000 per year and 25 percent offering $50,000 per year and that in all other respects, the jobs are equally satisfying. Assume that in this market, a job offer remains open for only a short time so that continuing to search requires an applicant to reject any current job offer. The expected starting salary for a college graduate with a bachelor's degree in economics is:
A. $50,000. B. $45,000. C. $40,000. D. $30,000.
In the United States, the idea that the federal government should undertake actions to stabilize business activity
A) was established in the Declaration of Independence. B) is a relatively new idea that developed in the years during and after the Great Depression. C) has been around since the early 1700s. D) developed during World War I.