When taxes are a function of income, the investment multiplier, government spending multiplier, and tax multiplier are all less than they would be if taxes were a lump sum amount.
Answer the following statement true (T) or false (F)
True
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An increase in demand for oil, along with a simultaneous increase in supply of oil, will
A. increase price, but whether it increases quantity depends on how much each curve shifts. B. increase quantity, but whether it increases price depends on how much each curve shifts. C. increase price and decrease quantity. D. decrease price and increase quantity.
Suppose that when the price of hamburgers increases, the Ruiz family increases their purchases of hot dogs. To the Ruiz family
A) hamburgers and hot dogs are normal goods. B) hamburgers and hot dogs are substitutes. C) hamburgers and hot dogs are inferior goods. D) hamburgers and hot dogs are complements.
Refer to the above figure. Ajax and Greenco are oligopolists. Above you are given the payoff matrix for the two firms giving the payoff associated with different pricing strategies
What is the best strategy for Greenco if Ajax decides on charging a high price? A) high price B) low price C) There is no best strategy. D) Not enough information is given to determine the best strategy.
The corporate income tax in the United States
A) excludes dividends paid out.
B) only taxes retained earnings.
C) results in individuals' being doubly taxed on corporate earnings.
D) does not apply to profits earned on exports.