What conclusion did the 1962 University of Chicago study on the burden of the corporate tax rate make?
What will be an ideal response?
The study concluded that owners of corporations, proprietorships, and partnerships all bear the burden of the corporate tax in rough proportion to profits, even though it is directly levied only on corporations.
You might also like to view...
If business losses are the result of uncertainty in the real world, then
A) business profits are too. B) profits must equal losses in the short run. C) profits must equal losses in the long run. D) losses could be eliminated if we could eliminate uncertainty in the real world, but profits will still remain.
The approach to GDP that sums compensation of employees, rental income, corporate profits, net interest, proprietors' income, depreciation, and indirect taxes and subtracts subsidies is the
A) opportunity cost approach. B) expenditure approach. C) added cost approach. D) income approach.
Suppose that the demand for apples in Washington is elastic and the supply is inelastic. If the government of Washington passes a law prohibiting the use of synthetic pesticides that increases the marginal and average costs of producing apples, then:
a. the price of Washington State apples will decline. b. Washington will stop producing apples, and New York apple growers will benefit. c. apple growers will pass most of the increased costs on to consumers in the form of higher apple prices. d. apple growers will keep prices constant but reduce costs by advertising less. e. apple growers will bear most of the increased costs of regulation, and prices will increase only slightly.
A single seller dominates the market for robotic mowers and charges a price above the competitive price. Some potential consumers do not buy mowers they would have bought at a lower price. What economic condition is represented by this scenario?
a. inventory b. externality c. efficiency d. monopoly