Answer:
The correct answer is: reduce; not as highly valued as others.
Explanation:
All the economic systems must provide people with the goods and services that they want and need. But it is also necessary to limit them from getting as much as they wish.
This is because providing as many goods and services as they want may lead to a reduction in efficiency. Economic efficiency is achieved when resources are allocated in such a way that there is no wastage and resources are allocated to most valued use.
If the economic systems do not restrict the production of goods and services as much as they want it may lead to the production of those goods and services that are not as highly valued as others. This will cause wastage of resources, thus reducing the economic efficiency of the system.
Answer:
$54,078.85
Explanation:
This is a Time Value of Money question, We are required to find the Payment (Pmt) from the following given parameters :
Pv = $250,000
i = 8%
n = 6
P/yr = 1
Fv = $ 0
Pmt = ?
Pmt = <em>$54,078.85</em>
Therefore Payment per year is <em>$54,078.85</em> (using a financial calculator)
Answer:
$85,000
Explanation:
Given that,
Shares sold = 50,000 shares of $3 par common stock for $5
Buys back = 10% of its common shares outstanding for $7 per share
Total equity on December 31 = $300,000
Balance in stockholder's equity without retained earnings:
= Beginning balance in stockholder's equity + Increase in stockholder's equity - Decrease in stockholder's equity
= $0 + (50,000 × $5) - (50,000 × 10% × $7)
= $250,000 - $35,000
= $215,000
Retained earnings on December 31:
= Total equity at December 31 - Balance in stockholder's equity without retained earnings
= $300,000 - $215,000
= $85,000
Answer:
Please check the answer below
Explanation:
a. One issue is the "locking-in" of assets. If I hold shares of Corporation X, then I can delay paying taxes as long as I don't sell. Effectively, I get to keep all of the interest/dividend payments on my tax liability. However, if I discover that X is really a poor investment and Corporation Y is better, then selling X and buying Y means that I have to pay taxes. This might discourage me from making a switch to a more profitable/efficient investment decision. This is the "locking-in" effect.
b. A short-run cut might cause many people to sell stocks that they had felt "locked-in" with. The penalty for switching is smaller, so more people will do it -- resulting in a great deal of cap gains tax revenue collected.
c. Taxing realized gains, even when the stock is not sold, rather than just accrued gains would eliminate this locking-in effect. Investors would not be penalized for switching to a better investment, and long-term capital gains revenue (as well as efficiency) would rise.
Answer:
A. Set above equilibrium price
Explanation:
A price ceiling is a mandatory maximum price that a seller is allowed to charge. Generally, a government may impose this in order to protect consumers, especially with regards to the purchase of essential goods.
If the price ceiling was set below the equilibrium price (option c) or if the equilibrium price is above the price ceiling (option b), it will immediately cause a shortage (option d) since the quantity demanded would be higher than the quantity supplied when the price falls. This is because people will be willing to purchase more since it is cheaper but suppliers will be willing to produce less due to lower profits. Hence, options b, c and d are eliminated.
Option A is correct because... (please refer attached diagram):
When the price ceiling is above the equilibrium price, suppliers are willing to supply more since they can make higher profits but consumers will reduce purchasing since it is expensive. However, it does not cause any immediate effect because it takes time for suppliers to be able to produce more and cannot be done immediately unless anticipated in advance. In the long run however, quantity demanded will fall from equilibrium quantity to D1 and quantity supplied will rise from equilibrium quantity to S1. Hence, causing a surplus between D1 - S1 in the long run.
