An increase in the corporate profits tax will most likely lead to
a. a decrease in the rental rate of capital in the corporate sector.
b. no change in the rental rate of capital in the corporate sector.
c. no change in the rental rate of capital in the non-corporate sector.
d. an increase in the rental rate of capital in the corporate sector.
d
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The natural rate of unemployment is comprised of
A) frictional and cyclical unemployment. B) frictional and structural unemployment. C) cyclical and structural unemployment. D) frictional, cyclical, and structural unemployment.
Interest rates are positive mainly because
A) of inflation. B) people tend to prefer the present to the future. C) people tend to prefer the future to the present. D) bankers are greedy.
A college education is a(n)
a. investment in human capital. b. form of innovation. c. public good. d. mediated settlement.
Suppose the government increases the size of a tax by 20 percent. The deadweight loss from that tax
a. increases by 20 percent. b. increases by more than 20 percent. c. increases but by less than 20 percent. d. decreases by 20 percent.