The federal government could stimulate investment spending by
a. phasing out the depreciation allowance on corporate income taxes.
b. enacting an investment tax credit.
c. reinstating the windfall profits tax.
d. reducing the tax rate on capital gains.
e. Both b and d are correct.
e
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Advice on taxes, accounting or management information systems, and business strategies are commonly referred to as ________ services
A) accounting audit B) management advisory C) seller D) managing underwriter
As the U.S. price level decreases, expenditures by which of the following will increase?
A. Businesses B. Consumers C. The rest of the world D. All of these will increase their expenditures.
Assume leisure is an inferior good instead of a normal good. The income effect of a wage decrease will lead to a ________ demand for leisure and a ________ labor supply.
A. higher; lower B. lower; higher C. lower; lower D. higher; higher
For some products, quality is virtually impossible to determine prior to purchase. If sellers of such commodities are rational, they will cheat or engage in unethical behavior only when:
A. production exhibits positive externalities. B. laws allow unethical behavior. C. the expected gains are greater than the expected costs. D. the expected gains are equal to the expected costs.