The tax treatment of corporate profit means that corporations
a. cannot profitably issue common stock.
b. choose investment opportunities more efficiently than do other types of firms.
c. limits the things in which corporations can invest.
d. can generally avoid paying federal taxes but not state taxes.
c
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The gross domestic product (GDP) concept accounts for society's valuation of the relative worth of goods and services by using a ________.
A. utility measure B. monetary measure C. measure of volume D. measure of physical weight
Refer to Figure 7-21. Which area represents total surplus in the market when the price is P1?
a. C+D b. A+B c. B+C d. A+B+C+D
Suppose the U.S. dollar changes in value from $1 = 1 euro to $1 = 0.75 euro. What effect would likely be the result?
a. U.S. imports from Europe would increase. b. European investments in the United States would decline. c. U.S. tourism to Europe would decline. d. European exports to the United States would increase.
If the GDP gap is -$3.5 trillion, then
A. workers are employed overtime. B. the economy is experiencing a boom. C. the economy is in a recession. D. cyclical unemployment is negative.