Answer: c. Provide safeguards against the withdrawal of assets by the owners of the bankrupt firm and allow insolvent debtors to discharge all of their obligations and to start over unhampered by a burden of prior debt.
Explanation:
When a person or entity files for Chapter 7 Bankruptcy, a trustee is appointed that will sell off the assets of the entity to enable repayment of debt to the creditors. As such, the entity will not be allowed to touch the assets thereby providing safeguards against their withdrawals by same.
After all assets are sold, any remaining debt is forgiven so that the debtor owes no more debt. This will then given them a chance to start over without having to worry about the previous debts they accumulated.
The answer is B - They are headed by one person
Answer:
The dead-weight loss from the tax is $2,250
Explanation:
Free market equilibrium price is P1
Total social economic benefit is the sum of:
- consumer surplus (area below demand curve and above price line P1) and
- producer surplus (area above supply curve and below P1)
When tax is imposed, quantity is reduced, price increased to P2 for consumer, P0 for supplier.
The part of the loss from consumer and producer surplus is compensated with the revenue from tax.
The other part (red triangle) is the dead-weight loss. Its amount is given by the area of the triangle with:
- base length being the tax amount ($15/unit) and
- height being the reduced quantity (300 units)
S = 
Answer:
B. U.S. real GDP will fall
Explanation:
United States´s real Gross Domestic Product ( <em>GDP</em> ) will fall, because having American consumers preferring foreign goods instead of locally produced articles, the expected consequence is a reduction in the volume of local manufacturing. This fall will affect negatively the GDP index, as domestic production decreases.
