Double taxation of corporate earnings means
A. for individuals who get dividends on personal income, tax rates are twice as high as for wage earners.
B. stockholders pay personal income taxes and corporation taxes on profits.
C. stockholders do not get the plowback but still pay taxes on it.
D. the corporation tax raises stock prices so individuals also pay a capital gains tax in addition to a tax on dividends.
Answer: B
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When the price of candy bars decreased from $0.55 to $0.45, the quantity demanded changed from 19,000 per day to 21,000 per day. In this price range, the price elasticity of demand (based on the midpoint formula) is
A. -0.5. B. -0.2. C. -1. D. -2.
The table above gives data for the nation of Mosh. In Mosh, equilibrium expenditure equals
A) $6 trillion. B) $10 trillion. C) $4 trillion. D) $9 trillion. E) $7 trillion.
How does the economist's measure of profit differ from the accountant's measure?
A) Economists subtract total revenue from total cost; accountants do the opposite. B) Economists subtract total costs from total revenue; accountants do the opposite. C) Economists consider more sources of monetary revenue than accountants do. D) Economists include all opportunity costs, accountants don't. E) There is no difference between the two measures.
Unprecedented stimulative policies throughout the global economy have sparked debate over the inflationary implications. Defenders of the policies argue that, even if the policies raise inflationary expectations, actual inflation will remain low
Critics charge that current policies are nearly certain to result in excessive inflation. What does the aggregate supply curve have to say?