In Which of the Time Periods Below Was the Surplus

question 62

Multiple Choice

In which of the time periods below was the surplus as a percentage of GDP the largest?

• A)Late 1940s.
• B)Late 1960s.
• C)Late 1980s.
• D)Late 1990s.

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Definitions:

Corporate Income Taxes

Taxes imposed on the net income of corporations, calculated after deductions for costs, depreciation, and interest.

Elasticity

A general concept measuring the responsiveness of one variable to changes in another variable.

Efficiency Loss

The loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Marginal Tax Rate

The tax rate paid on an additional dollar of income.