ECO 450 Week 10 Quiz
According to the Harberger model of the incidence of the corporate income tax, the tax:
Under the corporation income tax in the United States,
Accelerated depreciation allows corporations to:
If corporations maximize profits, the short-run incidence of a tax on its profits will be borne by:
The tax base for the corporate income tax in the United States is:
The double taxation of dividends under U.S. tax code means:
If an all-equity firm has after-tax income of $100,000 based on a 34% income tax, what is the after-tax income of an equivalent firm that pays $15,000 in interest that is tax deductible?
If interest on corporate debt is tax deductible, a firm’s return on equity increases because:
Assuming that the supply of savings is perfectly inelastic, the corporate income tax prevents the attainment of efficiency by:
If the supply of savings is not perfectly elastic, the corporate income tax is likely to:
In the long run a corporate income tax that initially reduces the return to investment in the corporate sector will also:
If corporations maximize profit, a corporate income tax:
Assuming that corporations maximize profits and investors seek to maximize the return to their investments, the long-run impact of a corporate income tax is to:
The effective tax rate is:
Which of the following is true about the economic effects of the corporate income tax?
In most states, the retail sales tax can be regarded as equivalent to a:
The differential incidence of substituting a tax on comprehensive consumption for a tax on comprehensive income is likely to be:
Suppose two individuals earn the same salary each year over their lifetimes. One individual saves 25 percent of his income each year, while the other saves nothing. Over their lifetimes under a comprehensive income tax,
The value-added tax used in the European Union:
As administered in most states in the United States, the retail sales tax:
Comprehensive consumption is:
A flat-rate tax on comprehensive consumption:
Which of the following taxes is likely to be most favorable for capital accumulation?
The invoice method of collecting the value-added tax:
Which of the following statements about taxes on consumption are true?
A consumption-type, value-added tax:
An adult’s life cycle is considered to begin:
Assuming that a person never receives any cash gifts or bequests, a tax on comprehensive consumption is equivalent to a(n):
A tax on comprehensive consumption