Author Question: Since corporate income taxes are levied on accounting profits and not economic profits, they tend to (Read 510 times)

am7272 · **on:** Oct 12, 2022

Question 1

The excess burden of a tax reflects a reduction of
◦ total economic surplus.
◦ total tax revenues.
◦ allocative inefficiency.
◦ both equilibrium price and quantity.
◦ economic profits generated in the economy.

Question 2

Since corporate income taxes are levied on accounting profits and not economic profits, they tend to
◦ be inefficient since they will affect the allocation of resources.
◦ introduce double taxation as individual shareholders also pay income tax on dividend income.
◦ favour the accounting profession as it boosts demand of their services.
◦ be efficient since economic profits are hard to assess.
◦ be inefficient since they fail to contribute substantially to federal revenues.

hvhf4k+549qz8f218jyo@shar · **Reply #1 on:** Oct 12, 2022

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 50% of students answer this correctly