27.

economic depreciation is

a. the money value of the net increase in an individual's power to consume during a period

b. the extent to which an asset

c, a subtraction from tax liability (as opposed to a subtraction from taxable income)

d. the change in the distribution of real income induced by a tax

28.

a firm is considering building a new facility for 5 million that will generate a before tax value of 5.5 million in output. the firm must borrow at an interest rate of 11% in order to finance the project. net income is taxed at 30%. the loan will be paid back in one year. should the firm make the investment in the new facility? suppose that the interest rate is instead 6%. does this change anything

29.

according to the Corlett-Hague (1953) rule, which commodity should be taxed at a higher rate?

a. child care services

b.fishing equipment

c. both goods should be taxed at the same rate

30.

vertical equity incorporates the notion that

a. there should be no excess burden created by a tax

b, those earning equal incomes should pay the same in taxes

c. taxes paid should be unassociated with income levels

d. those earning higher incomes should pay more in taxes

dont need explanation for multiple choice thanks