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garri49 [273]
3 years ago
15

Page(s) 165-166 5.3. Why do taxes create deadweight loss in otherwise efficient markets? How would the consumer notice if the go

vernment decided to levy a new $2 tax on potato chips?
(A) There would be no change in price and the consumer would not notice.
(B) Consumers would pay the same price for potato chips, but would notice the $2 tax at the register.
(C) The price of potato chips would rise.
(D) The government would tax individuals who bought too many potato chips.
Business
2 answers:
swat323 years ago
8 0

Answer:

Explanation:

(C) The price of potato chips would rise.

Mashcka [7]3 years ago
3 0

Answer:

The taxes lead to a increase in prices, so it leads to fewer people buying the product, which creates deadweight loss.

(C) The price of potato chips would rise.

Explanation:

The taxes lead to a increase in prices, so it leads to fewer people buying the product, which creates deadweight loss.

So the correct answer is:

(C) The price of potato chips would rise.

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Assume France and Mali can both produce grain and dates, and that the only limited resource is the farming labor force, meaning
soldi70 [24.7K]

Answer:

In France:

Farmer can produce = 10 metric tons of grain or 5 metric tons of dates in a season

In Mali:

Farmer can produce = 10 metric tons of grain or 25 metric tons of dates.

(1) Mali has the absolute advantage in producing dates because Mali produces more metric tons of dates than France from the same level resources.

(2) No country has an absolute advantage in producing grain because same amount of grain were produced by both the countries with the same level of resources.

(3) Opportunity cost of dates in France = \frac{10}{5}

                                                                 = 2 grain

Opportunity cost of dates in Mali = \frac{10}{25}

                                                       = 0.4 grain  

Therefore, Mali's opportunity cost of producing dates is lower than France, so Mali has a comparative advantage in producing dates.

(4) Opportunity cost of grain in France =  \frac{5}{10}

                                                                = 0.5 dates

Opportunity cost of grain in Mali = \frac{25}{10}

                                                      = 2.5 dates

Therefore, France's opportunity cost of producing grains is lower than Mali, so France has a comparative advantage in producing grains.                                          

7 0
3 years ago
Predetermined Overhead Rate; Various Cost Drivers
spayn [35]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Actual manufacturing overhead= $340,000

Budgeted machine hours= 10,000

Budgeted direct-labor hours= 20,000

Budgeted direct-labor rate= $14

Budgeted manufacturing overhead= $364,000

Actual machine hours= 11,000

Actual direct-labor hours= 18,000

Actual direct-labor rate= $15

First, we need to calculate the predetermined overhead rate for each cost driver:

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Machine-hours:

Estimated manufacturing overhead rate= 364,000/10,000= $36.4 per machine hour

Direct-labor hours:

Estimated manufacturing overhead rate= 364,000/20,000= $18.2 per direct labor hours

Direct-labor dollars:

Estimated manufacturing overhead rate= 364,000/(20,000*14)= $1.3 per direct labor dollar

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Machine-hours:

Allocated MOH= 36.4*11,000= $400,400

Direct-labor hours:

Allocated MOH= 18.2*18,000= $327,600

Direct-labor dollars:

Allocated MOH= 1.3*(18,000*15)= $351,000

Finally, we can determine the over/under allocation:

Over/under allocation= real MOH - allocated MOH

Direct-machine hours:

Over/under allocation= 340,000 - 400,400= $60,400 overallocated.

Direct-labor hours:

Over/under allocation= 340,000 - 327,600= $12,400 underallocated.

Direct-labor dollars:

Over/under allocation= 340,000 - 351,000= $11,000 overallocated

3 0
3 years ago
"Charles Dow was the original editor of the Wall Street Journal. He was the originator of​ ""Dow Theory,"" which holds that the
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Answer:

Answer is explained in the attachment.

Explanation:

Download docx
6 0
4 years ago
An example of an inventory accounting policy that should be disclosed in Summary of Significant Accounting Policies is the:_____
ludmilkaskok [199]

Answer:

Option C

Explanation:

The overview of important accounting rules is a portion of the end notes that accompanies the financial statements of an company, outlining the key policies that the finance department is following. The policy overview is prescribed by the accounting system in force (like the GAAP or IFRS).

The approach a corporation uses to assess the inventory expense (inventory valuation) affects the financial reports explicitly. Thus, it should be depicted in summary of accounting policies.

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Organizational culture: (select all that apply) a. is passed on to new employees through socialization and mentoring b. helps em
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