Author Question: Behavioral economics is an approach to the study of consumer behavior A) that emphasizes ... (Read 79 times)

DyllonKazuo · **on:** Jun 29, 2018

Behavioral economics is an approach to the study of consumer behavior

A) that emphasizes psychological limitations and complications that potentially interfere with rational decision making.
B) that emphasizes the capabilities of individuals to succeed in attaining all their unlimited wants utilizing limited resources.
C) that, in contrast to standard approaches in economics, utilizes the ceteris paribus assumption.
D) that, in contrast to standard approaches in economics, relies on real-world data to evaluate the usefulness of economic models.

Question 2

Explain how corporate profits are taxed twice.

What will be an ideal response?

ngr69 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A

Answer to Question 2

Corporate profits are taxed by the corporate income tax first. Second, dividends paid out of profits are taxed as personal income of the stockholders. If the company does not pay dividends but the value of the stock goes up, the stockholder will pay capital gains tax when he or she sells the stock.