“Plowback” is a preferred source of financing a corporation because
A. the funds are easier to obtain, compared to issuing stocks.
B. it is not subject to double taxation.
C. selling bonds involves the high cost of money.
D. stock markets are subject to random walks.
Answer: A
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"Everybody has a comparative advantage in something." Do you agree or disagree? Why?
What will be an ideal response?
Suppose Mr. Lee has total income of $120,000, has taxable income of $90,000, and pays $30,000 in taxes. Considering the information, what is Mr. Lee's nominal tax rate?
A. 75 percent. B. 33.33 percent. C. 25 percent. D. 10 percent.
Which of the following might cause the supply curve for an inferior good to shift to the right?
a. an increase in input prices b. a decrease in consumer income c. an improvement in production technology that makes production of the good more profitable d. a decrease in the number of sellers in the market
The monopolistic competitor
A. may make a profit in the short run but not in the long run. B. may make a profit in the long run but not in the short run. C. may make a profit in both the short run and the long run. D. may make a profit in neither the short run nor the long run.