In the short run, a constant (as a percentage of profits) corporate income tax imposed on a monopolist will _____
a. cause capital to flee the industry
b. cause output to fall
c. leave output unchanged
d. cause output to rise
c
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To help pull an economy out of a recession and put additional income in the hands of the public, a government can force its expenditures to ________ its revenues and create a ________
A) reduce; deficit B) exceed; special taxes C) stimulate; depression D) exceed; deficit
The creation of Medicare and Medicaid in 1965 dealt with contemporary public health concerns
a. True b. False
Use the above figure. When it maximizes its economic profits, the monopolistically competitive firm depicted in the figure
A) is earning an economic profit. B) is earning an accounting profit. C) is earning an economic loss. D) must increase output to reduce the ATC.
In recent years, net interest on the national debt paid by the federal government as a percentage of GDP is equal to approximately:
a. 1 to 3 percent. b. 5 to 9 percent. c. 10 to 14 percent. d. 15 to 19 percent. e. 20-25 percent.