Investment tax credits (ITCs) are _________ the firm's tax bill when particular capital assets are purchased.
A. deducted from
B. added to
C. close to zero for
D. none of these answer options are correct.
A. deducted from
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You have two career options. You can work for someone else for $50,000 a year, or, you can run your own business, with an annual revenue of $100,000, and explicit costs of $40,000 annually
Explain which career option a profit-maximizer would select and why.
In the late 1990s, debt-financed government spending decreased in Mexico. Following this decrease, consumption spending increased. Ricardian equivalence would explain this increase in consumption as the result of:
a. people's expectation of higher future taxes required to pay off government debt. b. people's expectation of lower future taxes that induce them to save less. c. automatic stabilization of the economy. d. the crowding out effect. e. an increase in current household disposable income.
Which statement is most likely correct about supply?
a. When economists refer to supply, they are referring to a certain point on the supply curve, or a quantity on the supply schedule. b. When economists refer to supply, they are referring to the relationship between a range of prices and the quantities supplied at those prices. c. When economists refer to supply they are referring to a specific point on the curve, not the entire curve. d. When economists refer to supply, they are referring to the relationship between a range of prices and the quantities demanded at those prices.
Which of the following would increase the incentive for inventors to seek out new inventions?
a. Receiving a larger share of social benefits from inventions b. Receiving all private benefits from inventions c. Sharing intellectual property rights for inventions d. Obtaining government funding to develop new inventions