In the long run, the corporate profits tax will lead to
A. lower profits in the corporate sector, but higher profits in the noncorporate sector.
B. higher profits in the corporate sector, but lower profits in the noncorporate sector.
C. higher profits in the corporate sector and higher profits in the noncorporate sector.
D. lower profits in the corporate sector and lower profits in the noncorporate sector.
Answer: D
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It is argued that if a rich high wage country such as the United States were to expand trade with a relatively poor and low wage country such as Mexico, then U.S. industry would migrate south, and U.S. wages would fall to the level of Mexico's
What do you think about this argument?
An important difference between a perfectly competitive firm and a monopolist is
A) the size of the industry. B) the primary objective of the firms. C) a monopolist only produces in the long run, while a perfect competitor only produces in the short run. D) the price it charges to sell additional units of a good.
Suppose you hold $5,000 in cash when the interest rate on bonds is 4 percent. Other things equal, as the bond interest rate declines to 3 percent, you will want to hold more money because the opportunity cost of holding money has decreased
a. True b. False Indicate whether the statement is true or false
Foreign citizens have been increasing their ownership of U.S. assets. This contributes to a U.S.
a. deficit on current account. b. deficit on financial account. c. surplus on current account. d. surplus on financial account.