Use the Information for the Question(s)below

question 47

Multiple Choice

Use the information for the question(s) below.
Consider the following tax rates: *The current tax rates are set to expire in 2008 unless Congress extends them.The tax rates shown are for financial assets held for one year.For assets held less than one year,capital gains are taxed at the ordinary income tax rate (currently 35% for the highest bracket) ;the same is true for dividends if the assets are held for less than 61 days.
-The effective dividend tax rate for a buy and hold individual investor in 2006 is closest to:

• A)0%
• B)35%
• C)15%
• D)20%

Understand the effects of subsidies and how they affect supply and demand equilibrium.

Analyze the impact of quantity taxes on market behavior and equilibrium.

Understand the concept of price elasticity in determining the responsiveness of quantity demanded and supplied to changes in price.

Apply supply and demand analysis to various real-world market situations, including shifts in market demand and supply curves.

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Definitions:

Descriptive Norm

Norms that convey information about what is commonly done in specific situations, influencing behavior by indicating what is considered typical or normal.

Informational Influence

The effect of others' actions or opinions on one's own beliefs or behaviors due to the desire to be correct in situations where the correct action or belief is uncertain.

Social Priming

The effect whereby exposure to a stimulus influences response to a later stimulus, often related to social behaviors and perceptions.

Honk Their Horns

A common way drivers communicate urgency, prompt attention, or express frustration using their vehicle's horn.