Double taxation of corporate earnings
A. is an advantage that other business organizations do not enjoy.
B. implies that stockholders earn higher returns to offset the tax disadvantage compared to other, similar financial assets.
C. reduces the limited liability of corporations.
D. only exists when corporations suffer losses.
Answer: B
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
As a means of motivating research and development, a patent may stimulate either too much or too little research, relative to the socially optimal level
Indicate whether the statement is true or false
Human resources that perform the functions of organizing, managing, and assembling the other factors of production are called
A) physical capital. B) venture capital. C) entrepreneurs. D) productive capital.
Which of the following is an interest-earning asset of banks?
a. Required reserves. b. Checkable deposits. c. Excess reserves. d. None of these are interest-earning assets of banks.