Explain how corporate profits are taxed twice
What will be an ideal response?
Corporate profits are taxed by the corporate income tax first. Second, dividends paid out of profits are taxed as personal income of the stockholders. If the company does not pay dividends but the value of the stock goes up, the stockholder will pay capital gains tax when he or she sells the stock.
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Which of the following will happen if a new firm enters in an oligopoly with differentiated products?
A) Market price will fall. B) Market price will rise. C) Existing firms will gain market share. D) Each firm will have an equal market share.
What is the "tax wedge"?
What will be an ideal response?
Money, such as gold, with some intrinsic value is called _____. Money with no intrinsic value is called _____
Fill in the blank(s) with correct word
If box C represents households, then box D represents _____
a. firms. b. resource markets. c. households. d. product markets. e. expenditures. check image at top