All categories

3 years ago

Taxes cause deadweight losses because they

Business

2 answers:

Ray Of Light [21]3 years ago

6 0

Answer:

The correct answer is C. All of the other options are correct.

Explanation:

In economics, it means that there is a loss of surplus because the imposition of taxes discourages the exchange of goods and services. This can be interpreted in the behavior of the consumer and seller, since their action is executed directly in the buying and selling processes. When the buyer's benefit from acquiring a good is modified by a high tax rate, then a decline in the purchase may occur to avoid incurring high costs.

vitfil [10]3 years ago

5 0

Answer:

All of the other options are correct.

Explanation:

Deadweight losses can be described as losses that is made to the economy, this is as a result of taxes or price control. Deadweight losses occur when supply and demand are not balanced, if this happens it will eventually lead to market inefficiency.

Taxes can be defined as the amount of money charged by the government which is above the selling price of a particular good or service.

Taxes can lead to deadweight loss when there is an increase in the price of a product which will eventually lead to a drastic decrease in the demand of the product.

You might be interested in

Planning practices are different from organization to organization. do you agree? explain

Snowcat [4.5K]

Answer:

yes I agree

Explanation:

because different organizations manufacture or provide different goods and services so it's not possible for them to have the same planning practices take for instance an organization that deals with the provision of food to refugees and an organization that deals with the manufacturing of goods these two organizations will plan differently on how to go about with there businesses.

I hope this helps

5 0

3 years ago

Lobbyists are hired by companies to influence legislation to meet a company's goals. They ask for things needed to program plans

masha68 [24]

Answer:

It is A hope this helps

8 0

3 years ago

The identify options step in the operational risk management (orm) process includes implementing engineering, administrative, an

stiks02 [169]

The correct answer for this statement would be TRUE. In the Operational Risk Management or ORM, this involves the careful decision making and should be systematic when managing hazards that endanger naval resources and one of the steps is implement controls which include engineering controls, administrative controls, and personal protective equipment. Hope this helps.

5 0

3 years ago

A small market orders copies of a certain magazine for its magazine rack each week. Let X 5 demand for the magazine, with pmf Su

Oksanka [162]

Answer:

See explanation below.

Explanation:

Let X the random variable that represent the demand for the magazine, the pmf for X is given by:

X 1 2 3 4 5 6

P(X) 1/15 2/15 3/15 4/15 3/15 2/15

3 magazines

For this case the total spent is 2*3 = $ 6

And the net revenue for this case would be:

$4-$6 = -$2 , X=1 (demand 1)

$4*2-$6 = $2 , X=2 (demand 2)

$4*3-$6 = $6 , X=3 (demand 3)

For the values of X=4,5,6 the net revenue will be $6 since the number of magazines is 3

And the expected value for the net revenue would be:

$E(R) = \frac{1}{15} *(-2) +\frac{2}{15} *(2) +\frac{3}{15}*(6) + \frac{4}{15}*(6) +\frac{3}{15}*(6) +\frac{2}{15}*(6) = \frac{74}{15}=4.93$

4 magazines

For this case the total spent is 2*4 = $ 8

And the net revenue for this case would be:

$4-$8 = -$4 , X=1 (demand 1)

$4*2-$8 = $0 , X=2 (demand 2)

$4*3-$8 = $4 , X=3 (demand 3)

$4*4-$8 = $8 , X=4 (demand 4)

For the values of X=5,6 the net revenue will be $8 since the number of magazines is 4

And the expected value for the net revenue would be:

$E(R) = \frac{1}{15} *(-4) +\frac{2}{15} *(0) +\frac{3}{15}*(4) + \frac{4}{15}*(8) +\frac{3}{15}*(8) +\frac{2}{15}*(8) = \frac{80}{15}=5.33$

As as we can see we have a higher expected value for the case with 4 magazines.

5 0

3 years ago

Consider the market for pens. Suppose that increased medical concerns over lead pencils have led schools to steer away from penc

LiRa [457]

Answer: False

Explanation:
Being able to determine the effect on price would have to be circumstantial

4 0

3 years ago