From the economist's point of view, dividends paid to stockholders are part of a corporation's costs
A) because taxes are paid on a corporation's profits prior to the payment of dividends.
B) because they must be included in stockholders' incomes for purposes of personal income taxation.
C) insofar as they are contractual obligations.
D) insofar as they represent what funds invested in the corporation could have earned elsewhere.
D
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In the market for gasoline, an increase in the federal excise tax on gasoline would shift the supply curve up
Indicate whether the statement is true or false
When an investment bank ________ securities, it guarantees a price for a corporation's securities and then sells them to the public
A) underwrites B) undertakes C) overwrites D) overtakes
The Coase theorem will apply only if
A. the courts can be used to determine the amount of compensation that must be made to the damaged party. B. the number of people involved is small. C. the amount of compensation that must be made to the damaged party is small. D. an individual who is not affected by the externality can negotiate a settlement between the parties imposing the externality and the parties that are harmed by the externality.
Most people's natural aversion against complex mathematical problems is an example of:
A. Confirmation bias B. A mental heuristic C. Rational choice D. Cognitive bias