Corporate profits are taxed twice because
A) taxes are collected on profits before profits are distributed to shareholders.
B) the government wants to minimize the amount of tax paid on capital gains.
C) it is economically efficient to reduce the amount of retained earnings.
D) capital gains are not indexed to the rate of inflation.
Answer: A
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There is a firm basis for specifying what a family's minimum needs are
Indicate whether the statement is true or false
Suppose Rebecca needs a dog sitter so that she can travel to her sister's wedding. Rebecca values dog sitting for the weekend at $200 . Susan is willing to dog sit for Rebecca so long as she receives at least $150 . Rebecca and Susan agree on a price of $175 . Suppose the government imposes a tax of $10 on dog sitting. The tax has made Rebecca and Susan worse off by a total of
a. $50. b. $40. c. $20. d. $10.
Which of the following statements correctly describes the relationship between the size of the deadweight loss and the amount of tax revenue as the size of a tax increases from a small tax to a medium tax and finally to a large tax?
a. Both the size of the deadweight loss and tax revenue increase. b. The size of the deadweight loss increases, but the tax revenue decreases. c. The size of the deadweight loss increases, but the tax revenue first increases, then decreases. d. Both the size of the deadweight loss and tax revenue decrease.
Refer to the table shown. In trillions of dollarsConsumption3.5Investment1.2Government Purchases1.8Exports0.6Imports0.4What are the economy's net exports?
A. ?$0.4 trillion B. $1.0 trillion C. $0.2 trillion D. ?$0.2 trillion