An increase in corporate income taxes would reduce

A. national income.
B. personal income.
C. gross domestic product.
D. net domestic product.


Answer: B

Economics

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Refer to Table 4-3. For whom is the good a normal good?

Table 4-3

Price

Bert’s
Quantity
Demanded

Ernie’s
Quantity
Demanded

Grover’s
Quantity
Demanded

Oscar’s
Quantity
Demanded

$0.00

20

16

4

8

$0.50

18

12

6

6

$1.00

14

10

2

5

$1.50

12

8

0

4

$2.00

6

6

0

2

$2.50

0

4

0

0

a. This cannot be determined from the table.
b. Grover only
c. Bert only
d. Bert, Ernie, Grover, and Oscar

Economics

Relative to a no-trade situation, if the United States imported jeans, the U.S. domestic price of jeans would

a. rise, but domestic output would fall. b. decline, but domestic output would rise. c. decline as would domestic output. d. rise as would domestic output.

Economics

The wedge between the buyers' price and the sellers' price is the same, regardless of whether the tax is levied on buyers or sellers

a. True b. False Indicate whether the statement is true or false

Economics

Foreign currency exchanges and interest payments on foreign debt are examples of:

A. financial flows. B. trade flows. C. capital flows. D. technology flows.

Economics