If company Z is receiving a government subsidy, the government is taking money from ____________ and giving it to company Z. If company Z is getting a tax deduction (instead of receiving a subsidy) then company Z is ______________________
A) taxpayers; paying more in taxes than it would without the tax deduction
B) taxpayers; subsidizing the taxpayers
C) Congress; paying more in taxes than it would without the tax deduction
D) taxpayers; paying less in taxes than it would without the tax deduction
D
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Which of the following are two components of the opportunity cost of using capital already owned by the firm?
A) economic profit and normal profit B) implicit rental rate and economic profit C) explicit rental rate and economic costs D) economic depreciation and forgone interest
What does it mean to say there is a separation of ownership from control in large corporations?
What will be an ideal response?
Maurice loses his job and decides to sit on the beach rather than looking for work the next few months. Other things the same, the unemployment rate
a. increases, and the labor-force participation rate is unaffected. b. increases, and the labor-force participation rate decreases. c. decreases, and the labor-force participation rate increases. d. decreases, and the labor-force participation rate decreases.
The large trade deficits in the U.S. during the 1990's were primarily associated with a rise in domestic investment spending rather than a rise in the budget deficit
a. True b. False Indicate whether the statement is true or false