Multiple Choice
Which of the following is not a way that a corporate tax on the income of U.S. car companies will affect markets?
A) The price of cars will rise.
B) The wages of auto workers will fall.
C) Owners of car companies (stockholders) will receive less profit.
D) Less deadweight loss will occur since corporations are entities and not people who respond to incentives.
Correct Answer:

Verified
Correct Answer:
Verified
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