Explain what is meant by the "double taxation of dividends"?
What will be an ideal response?
Corporate profits are subject to the corporate profits tax, which companies pay before they distribute dividends to their stockholders. Individuals must pay individual incomes taxes on the dividends they receive.
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The labor force divided by the working age population equals the:
A. participation rate. B. unemployment rate. C. population rate. D. employment rate.
Advocates of active stabilization policies, in defense of their views, argue that
A. stabilization is less necessary than is commonly advocated by monetarists. B. discretionary policy in not necessary because automatic stabilizers are sufficient. C. perfect stabilization is not possible, but moderate improvements in economic performance are possible, such as the response to the events of September 11, 2001. D. All of these responses are correct.
If total reserves for a bank are $12,000, excess reserves are $2,000, and demand deposits are $100,000, the money multiplier must be
A. 10. B. 15. C. 5. D. 20.
According to the neoclassical model, what would not result from the government levying a tax on firms for each worker the firm lays off?
A. Moral hazard would encourage workers to not work as hard as before. B. Firms would be less likely to lay off workers. C. The long-run unemployment rate would decrease. D. Unemployed workers would remain unemployed for longer periods of time. E. Firms would be less likely to hire workers.