Double taxation of corporate profits
A. imposes losses on investors’ incentives in corporate stock.
B. tends to keep corporations out of low-profit activities.
C. makes the allocation of resources more efficient.
D. makes issuing new stock prohibitively expensive.
Answer: B
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Which of the following is NOT a characteristic of a perfectly competitive market?
A. Sellers can easily buy and sell the productive resources needed to enter the market. B. Buyers and sellers are well-informed. C. Each firm in the market sells a somewhat different variant of the good. D. There are many sellers, each of which sells only a small fraction of the total quantity exchanged.
Another name for a "flat-rate tax" in which the same tax rate applies to all income earners is a
A) proportional tax. B) progressive tax. C) regressive tax. D) passive tax.
To reconcile the difference between GDP and national income, the U.S. Department of Commerce (which calculates these things)
a. adds depreciation of capital and indirect business taxes to GDP b. adds depreciation of capital to and subtracts indirect business taxes from GDP c. calculates GNP, then subtracts depreciation of capital and nonfactor charges from GNP d. subtracts depreciation of capital from and adds indirect business taxes to GDP e. subtracts depreciation of capital and indirect business taxes from national income
A market will tend to be more competitive when
a. there are a small number of firms in the market. b. similar products are available from alternative sellers. c. entry barriers into the market are high. d. governments require firms to meet strict regulatory standards.