Corporate profits are
A) taxed at too low a rate.
B) taxed only when a stockholder sells his or her shares of stock.
C) taxed twice—once by the corporate tax system, and again by personal tax system when they are paid to stockholders as dividends.
D) taxed three times—once by the corporate tax system, again by the personal tax system, and again as capital gains.
C
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Which of the following statements is NOT true about the relationship between the dollar value of total output and total income?
A) The dollar value of total output equals total income because profit is considered a cost of production. B) The dollar value of total output equals total income because of the economic definition of profit. C) The dollar value of total output equals total income because profit is not considered a cost of production. D) The dollar value of total output equals total income because the spending of one group is the income of another.
The payments to the factors of production are:
A) wages. B) rent. C) rent and interest. D) wages, rent, interest, and profits.
The theory that there are no predictable trends in securities prices that can be used to "get rich quick" is the
A) dartboard theory. B) random walk theory. C) Wall Street theory. D) inefficient market hypothesis.
Clark wishes to buy books and pens. Clark's best choice would be: a. choosing a consumption bundle that lies above the budget line
b. choosing a consumption bundle that lies below the budget line. c. choosing the consumption bundle where his highest indifference curve is tangent to the budget line. d. choosing the consumption bundle where his lowest indifference curve first intersects the budget line.