Owners of proprietorships
A. are not subject to paying any taxes on their firms' income.
B. report their firms' income directly on their individual income tax returns.
C. must pay the corporate profits tax as well as report their firms' income directly on their individual income tax returns.
D. must pay the corporate profits tax.
Answer: B
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Select the phrase that correctly completes the following statement. "A positive change in technology caused an increase in the supply of flat-screen televisions. As a result ________."
A) the price of flat-screen televisions decreased. The lower price caused the supply of flat-screen televisions to decrease B) the equilibrium quantity of flat-screen televisions decreased C) the price of flat-screen televisions decreased and the demand for flat-screen televisions increased D) the price of flat-screen televisions decreased and the quantity demanded of flat-screen televisions increased
The real risk-free interest rate is equal to:
a. The difference between the nominal interest rate and expected inflation. b. The tradeoff that society must make between consuming now and consuming later. c. The rate at which the International Monetary Fund borrows from the World Bank. d. The rate at which banks lend to their best customers (i.e., lowest credit risk). e. None of the above is correct.
Which of the following is an accurate statement about external economies of scale?
a. They involve a rise of market prices. b. They involve a reduction of input costs. c. They involve a shift of the MC curve upward. d. They involve a shift of the ATC curves to the right.
Assume you are planning to invest $200 each year for four years and will earn 8 percent per year. Determine the future value of this annuity due problem if your first $200 is invested now.