Question 1
Which of the following statements of the expected flow of future benefits is
false?
◦ Firms must rely on forecasts of expected future benefits to make sensible investment decisions.
◦ Households, business firms, and governments all evaluate the expected flow of benefits when making investment decisions.
◦ If future benefits are overestimated by the firm, the firm will under invest in capital.
◦ If future benefits are underestimated by the firm, the firm will under invest in capital.
Question 2
When a Democrat is elected as president, business leaders expect that the corporate profits tax will be increased. Most likely, this will cause business firms,
ceteris paribus, to
◦ plan to increase investment in the future to compensate for the higher tax rate.
◦ decrease investment because they would expect lower benefits from investment.
◦ not change their investment plans because higher corporate profit taxes will not change the demand for their product.
◦ increase investment because the higher corporate profits tax will increase the return on any investment.
According to this Democratic cartoon, the only qualification of General Zachary Taylor, the Whig can
Processes of Lightning Formation: Leaders, Strokes, and Flashes
business solution
Business Math
Business Math
The business trip grade 1