Corporate profits are
A) taxed at too low a rate.
B) taxed only when a stockholder sells his or her shares of stock.
C) taxed twice—once by the corporate tax system, and again by personal tax system when they are paid to stockholders as dividends.
D) taxed three times—once by the corporate tax system, again by the personal tax system, and again as capital gains.
Answer: C
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The figure above illustrates the current market for workers in Lima, Peru
a) Without any government intervention, what is the equilibrium wage rate and amount of employment? b) If the city government imposes a minimum wage of $3 an hour, what is the amount of employment? Does the minimum wage create any unemployment? Why or why not? c) If the city government imposes a minimum wage of $6 an hour, what is the amount of employment? Does the minimum wage create any unemployment? Why or why not?
Marginal productivity theory implies that in a perfectly competitive market economy, a worker will receive income
A) that is less than the value of her marginal contribution to the production process. B) equal to the value of her marginal contribution to the production process. C) that is greater than the value of her marginal contribution to the production process. D) greater than, less than, or equal to the value of her marginal contribution to the production process, depending on her ability to negotiate with employers.
Which of the following does not hinder economic development?
a. lack of education b. poor agricultural productivity c. low investment in human capital d. lack of technology e. good nutrition
A sudden increase in aggregate demand causes a ________ inflation and ________ output.
A. cost-push; lower B. demand-pull; higher C. demand-pull; lower D. cost-push; higher