The owner of Speedee Copy Center calculates that purchasing a new $13,000 color copier would return $1800 a year after payment of all expenses besides interest payments on borrowing $13,000
What is the maximum interest rate that makes purchasing the copier profitable? A) 13.84 percent.
B) 7.22 percent.
C) 8.62 percent.
D) 12.16 percent.
A
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If a tax is imposed on buyers in a market in which supply is perfectly inelastic, the
A) buyers pay the entire tax. B) sellers pay the entire tax. C) buyers and the sellers both pay a portion of the tax. D) neither the buyers nor the sellers pay the tax.
As conflicts between principles of taxation are normative in nature, _____
a. agreement is easily reached b. disagreement cannot easily be resolved c. the benefit principle should be the proper default d. the Pareto criteria should be used instead
In an effort to balance the federal budget, an increase in Social Security taxes is passed. What is the most likely effect of this on equilibrium GDP?
a. GDP will increase. b. GDP will decrease. c. GDP will not change but prices will rise. d. GDP will not change but employment will increase.
In economics, capital refers to
a. the finances necessary for firms to produce their products. b. buildings and machines used in the production process. c. the money households use to purchase firms' output. d. stocks and bonds.