Eco 450 entire course final exam

If corporations maximize profits, the short-run incidence of a tax on its profits will be borne by: Answer Question 14 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?

Answer Question 15 If the supply of savings is not perfectly elastic, the corporate income tax is likely to: Answer Question 16 Assuming that a person never receives any cash gifts or bequests, a tax on comprehensive conÂŹsumption is equivalent to a(n): Answer Question 17 In most states, the retail sales tax can be regarded as equivalent to a: Answer Question 18 Consumption-in-kind: Answer