The corporate income tax is ultimately paid by all of the following except
A) owners of the corporation.
B) the corporation's debtors in the form of lower rates of return on the corporation's bonds.
C) employees in the form of lower wages.
D) customers in the form of higher prices.
B
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The formula for the price elasticity of demand
A. relies on statistical data. B. is based fully on knowledge of the slope of the demand curve. C. in practice drops the sign and focuses on the magnitude. D. is valid only when the price of product increases.
Assume that instead of having a federal income tax, the federal taxes are levied as a consumption tax based upon a flat rate of 10 percent of all that you consume
How would this tax be different from an income tax? Would you expect this tax to be progressive, proportional, or regressive? What do you think would happen to the amount that people save under such a tax scheme? Explain your answers.
A pure private good has two characteristics: rivalry and excludability. Rivalry suggests that a private market, rather than the public sector, should produce the good, and excludability suggests a private market will provide it
a. True b. False
The Net Present Value approach to investment results in an investment being undertaken only if
A) its net present value is positive. B) its net present value is zero. C) it has positive cash flow. D) its internal rate of return equals the rate of interest.