The total burden of a tax equals tax receipts plus excess burden.
Answer the following statement true (T) or false (F)
True
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When consumption and leisure are both normal goods, after an increase in real dividend income minus taxation, the rational consumer
A) increases consumption and increases leisure. B) increases consumption and reduces leisure. C) reduces consumption and increases leisure. D) reduces consumption and reduces leisure.
Which of the following actions will decrease the gross domestic product (GDP)? a. Tom's alarm clock breaks, so he buys a new one
b. Tom buys a new alarm clock because he tends to sleep through the first alarm. c. Tom's alarm clock breaks. He now oversleeps and has to buy a cup of coffee on the way to work instead of making it at home. d. Tom gets fired for being late often after his alarm clock breaks. e. Tom sells his broken alarm clock and uses the money to buy some French fries.
Determine whether each of the following transactions will be counted in the 2005 GDP of the United States. If the transaction is counted, identify which expenditure component (personal consumption, gross investment, government consumption and gross investment, or net exports) will be affected
a. Norm, a frequent visitor to a local bar, purchases a Budweiser beer. (Budweiser beer is domestically produced.) b. The owner of the local bar purchases a new domestically made cooler unit in which to store his beer. c. Carla, a U.S. foreign exchange student, works her way through college in Germany as a waitress in a bar. d. On her night off, Carla purchases a Budweiser beer for her friend in the German bar.
Limited liability is a key advantage of partnerships and sole proprietorships over corporations.
Answer the following statement true (T) or false (F)