Assume That Both the Corporate and Noncorporate Sectors Are in Long-Run

question 215

Multiple Choice

Assume that both the corporate and noncorporate sectors are in long-run equilibrium before the imposition of a corporate profits tax. In the short run, the imposition of a corporate profits tax will ________ profits in the noncorporate sector, but ________ profits in the corporate sector.

• A) increase; decrease
• B) not change; not change
• C) not change; decrease
• D) decrease; increase

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Definitions:

Fear

An unpleasant emotional state triggered by the perception of danger, real or imagined.

Positive Emotions

Emotions that are associated with happiness and well-being, including joy, gratitude, and love.

Need For Cognition

A psychological trait that describes an individual's preference for effortful cognitive activities, essentially enjoying thinking and problem-solving.

Promotion Focus

A motivational state where the primary goal is to achieve positive outcomes and realize aspirations.