Which of the following statements concerning the federal corporate income tax is true?
A) It is an efficient tax because it imposes a small excess burden relative to the tax revenue it raises.
B) The corporate income tax is an example of the benefits-received principle.
C) The incidence of the corporate income tax can be determined by using demand and supply analysis.
D) Determining the incidence of the corporate income tax is complicated because it is not certain how corporations respond to the tax.
D
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According to the Law of Comparative Advantage,
A) production should be based on who can produce a product lowest opportunity cost. B) production should be based on who can produce more of a good. C) production should take into account strategic interests, such as national security. D) production should be for the people instead of for profit.
Robert Iwasaki lives next door to a toxic waste landfill. Katie Cooley lives five miles downstream from a steel plant that dumps waste into Mill Creek. Which person is more likely to press public officials for a cleaner environment?
a. Katie b. Robert c. neither d. both equally e. Economics cannot answer this question
Use the money market to explain the interest-rate effect and its relation to the slope of the aggregate demand curve
Economists are trained to be as:
A. subjective as they can be. B. opinionated as they can be. C. deconstructionist as they can be. D. objective as they can be.