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.
C) results in individuals' being doubly taxed on corporate earnings.
You might also like to view...
In the long run, the price elasticity of demand is ________ than in the short run because ________
A) less; consumers have more time in which to make adjustments to price changes B) less; the percentage change is measured over a larger amount of time C) greater; consumers have more time in which to make adjustments to price changes D) greater; firms have more time to shift the burden of the tax forward to consumers
The domestic demand curve, domestic supply curve, and world supply curves for a good are given in the above figure. All the curves are linear. Initially, the country allows imports. Then imports are banned
Calculate how consumer and producer surplus change because of the ban. Is the country better off with the ban on imports? Why?
An advertising race among oligopolists may be rational if it
a. is defense advertising. b. raises entry barriers. c. increases cost per unit of sales. d. encourages new entrants.
Assume the central bank pursues contractionary monetary policy. What is the first round effect on the value of the domestic currency, if there is high mobility in the international capital markets?
a. The value of the currency rises. b. The value of the currency falls. c. The value of the currency is unaffected. d. The change in the value of the currency is ambiguous.