Answer:
b. $0, -$10, $0
Explanation:
Sam is the producer, and he was getting $50 for moving Sofia's lawn. When the government imposes a tax of $10 on his activity, he now receives $60, but because $10 of those $60 is paid in taxes, his surplus remains the same: $50, so the change in the producer's surplus is $0.
Sofia is the consumer, and she was paying $50, but now she pays $60, thus, her consumer surplus has changed by -$10.
The sum of the change in consumer and producer surplus is $10 ($0 + $10), which is the same as the growth of government revenue from the taxes imposed: $10, therefore, the deadweight loss is $0.
Answer:
$100; $75
Explanation:
Given that:
- Tax revenue falls by 100 million dollars
- marginal propensity to consume (MPC) is 0.75.
Due to the fall in tax revenue, disposable income will increase by the same amount, that is, $100 million.
Consuption spending will initially increase by $75 million, as shown below:
= MPC × tax revenue fall
= 0.75 × $100,000,000 = $75,000,000
The answer to the given situation is "the result of this oversight is that the liabilities are understated".
We can define understated as if someone say to you that your account is understated, it means that either the amount is incorrect or the amount is too small or it is less than the actual or true amount. In the given case the entry was not made due the understatement of liabilities.
Answer: <u>Memos omit a closing signature.</u>
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<u>(I took the test and this was the answer)</u>
