If There Is an Increase in Taxes on Business Firms

question 50

Multiple Choice

If there is an increase in taxes on business firms in a small open economy,it causes the current account to ________ and the equilibrium quantity of saving to ________.

• A)fall; fall
• B)rise; remain unchanged
• C)fall; remain unchanged
• D)rise; fall

Grasp the legal positions of principals, agents, and third parties within the scope of agency law.

Understand the characteristics and liabilities associated with different forms of business organizations, specifically sole proprietorships, partnerships, and corporations.

Recognize the legal implications of the relationships between agency, principal, and third parties.

Comprehend the concept of fiduciary duties within various business relationships.

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Definitions:

Ingroup

A social group to which a person psychologically identifies as being a member, often leading to favoritism and loyalty towards the group.

Outgroup

A social group with which an individual does not identify, often leading to them being viewed as "them" in contrast with the "us" of the ingroup.

Availability Heuristic

A cognitive shortcut that relies on immediate examples that come to a person’s mind when evaluating a specific topic, concept, method, or decision.

Explicit Bias

Conscious or deliberate prejudice toward particular groups or individuals based on race, gender, age, or other characteristics.