Which of the Following Is Not a Way That a Corporate

question 317

Multiple Choice

Which of the following is not a way that a corporate tax on the income of U.S. car companies will affect markets?

• A)The price of cars will rise.
• B)The wages of auto workers will fall.
• C)Owners of car companies (stockholders) will receive less profit.
• D)Less deadweight loss will occur since corporations are entities and not people who respond to incentives.

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