Explain what is meant by saying that capital income is taxed twice
Shareholders are part owners of a corporation. The corporation's income is taxed. If shareholders receive dividends from what's left over, these dividends are also taxed.
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Saving for protection against unexpected setbacks-such as the loss of a job or a medical emergency-is called ________ saving.
A. life-cycle B. precautionary C. bequest D. public
Which of the following statements is inconsistent with an elastic demand curve?
A. The relative change in quantity exceeds the relative change in price. B. Total revenues fall when prices rise. C. Buyers are relatively sensitive to price changes. D. The absolute value of the price elasticity of demand is less than 1.
An excess supply of wheat
a. is impossible if people are hungry b. is impossible if the price of wheat is below equilibrium c. will result when quantity demanded exceeds quantity supplied at the current price d. cannot change the price of wheat unless the supply curve shifts as a result of the excess supply e. indicates that the problem of scarcity of wheat no longer exists
Look at the following data: personal income = $4,900 billion; personal taxes = $900 billion; transfer payments = $980 billion. What is disposable income?
A) $3,200 billion B) $4,000 billion C) $4,980 billion D) $1,880 billion E) There is not enough information to answer the question.