Inflation reduces the average real income in the economy and redistributes purchasing power
a. True
b. False
B
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The corporate income tax in the United States
A) excludes dividends paid out. B) only taxes retained earnings. C) results in individuals' being doubly taxed on corporate earnings. D) does not apply to profits earned on exports.
Laissez-faire advocates believe that the government should
a. nationalize certain industries b. not provide tax incentives to firms for research c. foster an environment that is favorable to research d. actively use price controls when excess profits are earned e. outlaw monopolies which use research to further their power
The principle of comparative advantage holds that nations should
a. specialize in activities for which they have the lowest opportunity cost. b. strive to become self-sufficient in production. c. produce only goods and services for which they have absolute advantage. d. become less labor-intensive and more capital-intensive.
Recall the Application about the use of fertilizer and its impact on crop yields to answer the following question(s). The table is taken from this Application.
Bags of Fertilizer Bushels of Corn0851120213531444147Based on the data in the table, this Application addresses the economic concept of:
A. the marginal principle. B. the principle of voluntary exchange. C. the principle of diminishing returns. D. the real-nominal principle.