Supply curves that are horizontal are called perfectly elastic and have an infinite elasticity, whereas supply curves that are vertical are called perfectly inelastic and have a zero elasticity

A friend tells you he is studying the incidence of the corporate income tax. What is the subject of his study?

A) how frequently corporations should be taxed B) how inflation affects the amount of tax revenue collected from firms C) how corporations can aid the government in collecting delinquent taxes D) how the burden of corporate taxation is distributed among stockholders, employees, and consumers

The theory that there is no predictable trends in securities prices is the

A) opportunity cost of capital. B) random walk theory. C) capital reinvestment. D) present value.