TRUE OR FALSE? 71. Corporations are the most prevalent U.S business form and the
ID: 1211051 • Letter: T
Question
TRUE OR FALSE?71. Corporations are the most prevalent U.S business form and the main source of U.S business income.
99. In the 1970s, the world price of oil was driven upward due to an increase in demand.
102. A change in both the domestic price level and the foreign price level will translate into a parallel shift of the domestic aggregate demand curve.
106. Value added taxes and excise taxes constitute a direct tax.
107. Crowding out is a drop in consumption or investment spending caused by government spending.
110. Automatic stabilizers cause a smaller budget deficit (larger budget surplus) during recessionary periods and a larger deficit (smaller surplus) during expansionary periods. TRUE OR FALSE?
71. Corporations are the most prevalent U.S business form and the main source of U.S business income.
99. In the 1970s, the world price of oil was driven upward due to an increase in demand.
102. A change in both the domestic price level and the foreign price level will translate into a parallel shift of the domestic aggregate demand curve.
106. Value added taxes and excise taxes constitute a direct tax.
107. Crowding out is a drop in consumption or investment spending caused by government spending.
110. Automatic stabilizers cause a smaller budget deficit (larger budget surplus) during recessionary periods and a larger deficit (smaller surplus) during expansionary periods. TRUE OR FALSE?
102. A change in both the domestic price level and the foreign price level will translate into a parallel shift of the domestic aggregate demand curve.
106. Value added taxes and excise taxes constitute a direct tax.
107. Crowding out is a drop in consumption or investment spending caused by government spending.
110. Automatic stabilizers cause a smaller budget deficit (larger budget surplus) during recessionary periods and a larger deficit (smaller surplus) during expansionary periods.
Explanation / Answer
ANSWERS:
71. FALSE: Sole-proprietorship is the most common form of business organization in the USA, because it is simple to form mange and close
99. FALSE: The world oil-crisis in the 1970’s was due to restricted supply after the formation of the Cartel called OPEC by the major oil-producing countries, led by the Kingdom of Saudi Arabia.
102. TRUE : other-things remaining the same a rise/fall in Prices will shift AD
106. FALSE: They are both forms of indirect taxation. Because the ultimate burden of tax falls on the consumer.
107. TRUE. If the government consumption or investmentdoes not increase the total income in the economy, total consumption by the private sector will fall during the subsequent periods.
110. TRUE: That is why they are called automatic stabilizers. They adjust so as to restore equilibrium when either the demand or supply swings in either direction.
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