The ultimate burden of the corporate profits tax appears to depend on all of the following except
A. the ease with which capital and labor can be substituted in the corporate and noncorporate sectors.
B. the tax rate structure of the corporate profits tax.
C. the relative capital/labor intensity of the corporate and noncorporate sectors.
D. the elasticities of demand for the products produced in the corporate and noncorporate sectors.
Answer: B
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There are certain variables that are so obviously related to past crises that they may serve as warning indicators of potential future crises. Identify one such variable from the following
a. Barriers to trade b. Short-term international investment c. Flexible exchange rates d. Rising international reserves e. Fluctuating share prices
International free trade:
A. may have individual winners and losers of surplus within a country. B. creates surplus only for the producers in a country. C. allows everyone involved to gain surplus. D. creates surplus only for the consumers in a country.
If an individual perfectly competitive firm charges a price above the industry equilibrium price, it will
A. sell part of what it can produce and gain less revenue than competitors will. B. not sell any of what it produces. C. sell all that it can produce and gain equal revenue with competitors. D. sell all that it can produce and gain more revenue than competitors.
The Pareto Unanimity axiom in Arrow's theorem implies that Arrow believes social choice processes should choose only pareto efficient outcomes.
Answer the following statement true (T) or false (F)