Which of the following is not a way that a corporate tax on the income of U.S. car companies will affect markets?
a. The price of cars will rise.
b. The wages of auto workers will fall.
c. Owners of car companies (stockholders) will receive less profit.
d. Less deadweight loss will occur since corporations are entities and not people who respond to incentives.
d
You might also like to view...
Refer to Table 4-7. Suppose that the quantity of labor supplied decreases by 80,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?
A) W = $8.50; Q = 550,000 B) W = $11.50; Q = 610,000 C) W = $12.50; Q = 550,000 D) W = $8.50; Q = 630,000
Product differentiation that makes the product better for some consumers and worse for others is
A. never undertaken by firms. B. horizontal differentiation. C. always welfare decreasing. D. vertical differentiation.