Bundle: Principles of Economics, Loose-leaf Version, 8th + LMS Integrated MindTap Economics, 2 terms (12 months) Printed Access Card
8th Edition
ISBN: 9781337607735
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 12, Problem 6CQQ
To determine
The impact of the given scenario.
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Ezekiel works for a medium sized firm where
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If the corporate income tax induces businesses to reduce their capital investment, then a workers bear some of the burden of the tax b. the tax does not have any deadweight loss c. the tax achieves the goal of vertical equity d. corporate shareholders benefit from the tax.
If the corporate income tax induces businesses toreduce their capital investment, thena. the tax does not have any deadweightloss.b. corporate shareholders benefit fromthe tax.c. workers bear some of the burden ofthe tax.d. the tax achieves the goal of verticalequity
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Bundle: Principles of Economics, Loose-leaf Version, 8th + LMS Integrated MindTap Economics, 2 terms (12 months) Printed Access Card
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- Which of the following business forms is a government creation that looks like a corporation but is taxed like sole proprietorships and partnerships?Choose one answer.a. Limited liability company b. S corporation c. Franchise d. Acquisitionarrow_forwardHow corporations are designated changes depending on where the corporation is doing business? When a corporation is in the state in which it is incorporated it is known as a(n) A. Foreign corporation B. Public corporation C. Alien corporation D. Domestic corporationarrow_forwardChoose the Letter of the Correct Answer. 1. It is an act of laying a tax. A. Theory of tax B. Taxation C. Taxing D. Tax 2. A tax imposed by the government at each stage in the production of goods. A. Excise B. Value –added tax C. Property D. Individual tax 3. A tax imposed for the general purposes of the government to raise revenue for the local area needs. A. National B. Municipal C. Community D. Local 4. It is sanction imposed as a punishment for violation of law or acts deemed injurious. A. Tax B. Penalty C. Fine D. Debt 5. This kind of tax is derived from the individuals, corporate estates, and trusts income. A. Income tax B. Capital gains tax C. Donor Tax D. Estate taxarrow_forward
- Which of the following is not a canon of taxation? Pick a,b,c, or d a. Equity b. General Acceptability c. Convenience d. Certaintyarrow_forwardThe Social Security tax is a tax on a. land. b. capital. c. savings. d. labor.arrow_forward95. Homeowners a. benefit from several loopholes. b. must pay tax on the “income” of living in a house. c. have no particular advantages in the tax system. d. are subject to double taxation.arrow_forward
- QUESTION 1 1. Match the description to the type of tax. v Tax on the use of vehicles, gasoline, alcohol, cigarettes, highways, and A. Estate Tax the like. B. Excise Tax v Tax on the wealth and property of a person upon death. v Tax on wages, earned interest, capital gain, and the like. v tax on home and land ownership v Tax on purchases of discretionary items v Tax on items during their production as well as upon consumption C. Income Tax D. Sales Tax E. Value Added (VAT) tax or Goods and Services (GST) lax F. Property Taxarrow_forward50. A fully-funded system A. has current retirees being paid out of the taxes of current workers. B. has a sufficient amount of money on hand currently to pay out all future obligations. C. has current retirees being paid out of the taxes of current workers and has a sufficient amount of money on hand curently to pay out all future obligations. D. never needs to run a surplus.arrow_forwardTax incidence refers to ? A. the average tax rate. B.how much revenue a tax generates. C.the extent to which a tax is proportional. D. who bears the burden of a tax.arrow_forward
- The U.S tax system a progressive income tax. What is a progressive taxarrow_forwardA regressive tax A. imposes a greater burden on those with higher incomes than on those with lower incomes B. is based on the ability to pay principle C. takes a greater percentage of the income of lower-income groups than of higher-income groups. D. is based on the benefits received principle. E. is considered to be the most equitable type of taxarrow_forwardTRUE or FALSE and EXPLAIN The corporate income tax is a progressive tax because profits from corporations accrue mostly to high income individuals.arrow_forward
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