Which of the following is not true of tax loopholes?
A. They reduce the progressivity of the federal income tax.
B. They encourage particular patterns of behavior.
C. They include exemption of interest earned on municipal bonds.
D. They reduce excess burdens.
Answer: D
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Use Figure 13.2 which depicts a monopolist firm to help with the following question. Why would this firm not find it profitable to produce more than Qm or less than Qm?
What will be an ideal response?
One of the assumptions of the Gordon Growth Model is that dividends will continue growing at ________ rate
A) an increasing B) a fast C) a constant D) an escalating
The aggregate supply curve in the classical model is
A) horizontal. B) vertical. C) upward sloping. D) downward sloping.
A firm that exists as a separate legal being is
a. a sole proprietorship b. a corporation c. a partnership d. likely to be a small, family-run business e. still dependent on its owners in many ways