Which of the following is NOT a result of the double taxation of dividends?
A) Because profits that firms distribute to stockholders are taxed a second time, firms have an incentive
to retain profits rather than to distribute them to stockholders.
B) The return investors receive from buying stocks is reduced, which reduces the incentive people have to save in the form of stock investments and increases the costs to firms of raising funds.
C) It gives firms an incentive to take on what may be an excessive level of debt rather than issue stock.
D) The decline in retained profits results in increased inefficiency.
D
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Because of the number of firms in monopolistic competition,
A) each firm has a large market share. B) it is possible for the firms to collude. C) no one firm can dominate the market. D) one firm has the ability to dictate market conditions. E) each firm must carefully monitor what its competitors do.
At the beginning of the year, Tom's Tubes had a capital stock of 5 tube inflating machines. During the year, Tom scrapped 2 old machines and purchased 3 new machines. Tom's gross investment for the year totaled
A) 1 machine. B) 2 machines. C) 3 machines. D) 6 machines.
In the extended version of the circular flow model,
a. resources flow from the government to households b. resources flow from firms to households c. taxes flow from firms to the government d. resource payments flow from households to firms e. imports flow from firms to foreign economies
Nursing home care is covered by
A. Medicaid, regardless of income or wealth. B. Medicaid, but only for the poor. C. Medicare, Part A. D. Medicare, Part B.