Because the Supply of Capital Is Highly Elastic,taxing the Income

question 28

Multiple Choice

Because the supply of capital is highly elastic,taxing the income from capital results in
i.firms that demand capital paying the greater share of the tax.
ii.a decrease in the equilibrium quantity of capital.
iii.a deadweight loss.

• A) i only
• B) ii only
• C) i and iii
• D) ii and iii
• E) i, ii, and iii

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Definitions:

Alternate Forms Reliability

Assessment of reliability by administering two different forms of the same measure to the same individuals at two points in time.

Split-half Reliability

A measure of consistency where a test is divided into two parts and the scores on both halves are compared to assess the test's reliability.

Predictivity

The ability of a model or test to accurately forecast outcomes or behaviors.

Reliability

The consistency and stability of a measurement over time, indicating the degree to which an instrument or procedure repeatedly produces the same result under the same conditions.