Economists argue that the corporate income tax is an example of a tax with a high deadweight loss because
A) it encourages corporations to seek ways to evade taxes.
B) taxing a corporation's income amounts to double taxing the earnings on individual shareholders' investments in corporations.
C) some of the burden of the tax is passed on to consumers in the form of higher prices.
D) it discourages corporations from undertaking capital investments to enhance market competitiveness.
B
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GDP can increase from one year to the next by:
A) increases in prices while quantities of goods and services are constant. B) increases in the quantities of goods and services produced while prices remain constant. C) both prices and quantities of goods and services increase. D) all of the above.
If unemployment benefits, payable for 26 weeks, became more generous it would be likely to _____ structural unemployment and _____ the natural rate of unemployment:
a. Not change; not change b. Not change; increase c. Increase; increase d. Increase; not change