Course Public Finance Test Quiz 8

Instructions This quiz consist of 30 multiple choice questions. The first 15 questions cover the material in Chapter 15. The second 15 questions cover the material in Chapter 16. Be sure you are in the correct Chapter when you take the quiz.

Question 1

According to the Harberger model of the incidence of the corporate income tax, the tax: Answer

Correct Answer:

reduces the return to capital in all uses.

Question 2

Under the corporation income tax in the United States, Answer

Correct Answer:

the opportunity cost of equity cannot be deducted from the tax base.

Question 3

Accelerated depreciation allows corporations to: Answer

Selected Answer:

Correct Answer:

earn more interest on their capital...