What are the effects of the double taxation of dividends?
What will be an ideal response?
First, the return investors receive from buying stocks is reduced, which reduces the incentive individuals have to save in the form of stock investments and increases the costs to firms of raising funds. Second, firms have an incentive to retain profits rather than to distribute them to stockholders. Finally, because firms can deduct from their profits the interest payments they make on loans and bonds, the double taxation of dividends gives firms an incentive to take on what may be an excessive level of debt rather than issue stock.
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If the regulatory agency sets a price where AR = AC for a natural monopoly, output will be
A) equal to the competitive level. B) equal to the monopoly profit maximizing level. C) greater than the monopoly profit maximizing level and less than the competitive level. D) greater than the competitive level.
A TV actor used to be a teacher. Aside from the salary, he likes both jobs equally well. If he can earn $50,000 as a teacher and $300,000 as an actor, what are his economic rent and opportunity costs as an actor?
a. Economic rent is $250,000 . opportunity costs are $50,000. b. Economic rent is $50,000 . opportunity costs are $250,000. c. Economic rent is $50,000 . opportunity costs are $300,000. d. Economic rent is $300,000 . opportunity costs are $50,000. e. Economic rent is $300,000 . opportunity costs are $350,000.
Attempts to reduce income inequality may lead to greater income inequality.
Answer the following statement true (T) or false (F)
In April? 2017, the? working-age population of the United States was 254.6 million. The? working-age population is divided into those in the labor force? (160.2 million) and those not in the labor force? (94.4 million). The labor force is divided into the employed? (153.2 million) and the unemployed? (7.1 million). Those not in the labor force are divided into those not available for work? (88.7 million) and those available for work? (5.7 million).? Finally, those available for work but not in the labor force are divided into discouraged workers? (0.5 million) and those currently not working for other reasons? (5.2 million).
What will be an ideal response?