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8090 [49]
3 years ago
15

If the government becomes more heavily involved in subsidizing some businesses and sectors of the economy while levying higher t

axes on others, how will this influence the quantity of rent seeking? how will this affect long term growth? explain.
Business
1 answer:
VikaD [51]3 years ago
7 0

Answer:

If the government becomes more heavily involved in subsidizing some businesses and sectors of the economy while levying higher taxes on others, the quantity of rent seeking will increase and long term growth will be impeded.

Explanation:

The term rent in rent seeking is based on an economic rent which was defined by economist Adam Smith to mean payments made in excess of resource costs.  

An example of rent seeking is when a company lobbies the government for grants, subsidies, or tariff protection.

If the government becomes more heavily involved in subsidizing some businesses and sectors of the economy while levying higher taxes on others, the businesses that will benefit will enjoy monopoly and the other businesses will run at a loss and could become bankrupt.

The long term effect of having a business environment that is not competitive is poor growth.

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Jade puts a picture of a collection of rare sports memorabilia up for bids on BuyBay, an Internet auction site. Khalil makes the
tankabanditka [31]

Answer:

cyber fraud.

Explanation:

Cyber fraud can be regarded as one the numeeous type of cybercrime fraud, it could be a deception or tricks in the use the Internet just to defraud people, stealing of victims information and other valuables. These could able hiding of information by the fraudster or giving fake information so he/she can rob victims online of their valuables.

4 0
3 years ago
What piece of legislation, one of the most complex areas of federal civil law, was established in 1974 mainly to protect the emp
Angelina_Jolie [31]

Employee Retirement Income Security Act is established in 1974 mainly to protect the employee pension system from employer fraud.

<h3>What is Employee Retirement Income Security Act?</h3>

The Employee Retirement Income Security Act serves as an act of 1974 that contains rules on the federal income tax to favor employees.

This act, provides employee with benefit plans and a protection against wicked employers.

Learn more about Employee Retirement Income Security Act at;

brainly.com/question/1083892

4 0
2 years ago
Jacob Corcoran bought 10,000 shares of Grebe Corporation stock two years ago for $24,000. Last year, Jacob received a nontaxable
Evgen [1.6K]

Answer:

Explanation:

Given that :

Jacob Corcoran bought 10,000 shares of Grebe Corporation stock two years ago for $24,000.

Last year, Jacob received a nontaxable stock dividend of 2,000 shares in Grebe Corporation, and

In the current tax year, Jacob sold all of the stock received as a dividend for $18,000.

The objective is to prepare a memo for the tax research file describing the tax consequences of the stock sale.

From the tax research file:

The gain on the sale of the 2,000 shares is calculated by the difference from the sales price and the shares sold.

I.e $24000 - $18000 = $6000

The tax rate on the $2000 = Purchase price of the shares/ (Original shares bought + new shares)

The tax rate on the 2000 shares = $24000/($10000+$2000)

The tax rate on the 2000 shares=  $24000/$12000

The tax rate on the 2000 shares=  $2 / shares

The Gain in the share = selling price - tax basis in the 2,000 new shares

The Gain in the share =  $18000 - $4000

The Gain in the share = $14000

∴

This is the long capital gain i.e  $14000

The memo in summary goes thus:

The amount of $24000 is being paid by you for 10000 shares of stock in Grebe Corporation in which a stock dividend of 2000 was received. However, the share is sold for $18000, the tax basis is deduced by dividing $24000 purchasing price by $12000(original price + new shares price) which resulted into a $2/ shares.  The $14,000 gain on the sale is a long-term capital gain. The gain on the sale is long term because the original Grebe stock has been held for more than one year.

5 0
3 years ago
What the reasons for creating the necessity for restructuring the Organization Structure?
Nataly [62]

Answer:

To execute new strategy

Explanation:

Firms and organisations on a quarterly or yearly basis try to change their business strategies to improve revenues and to compete in the market. Overall, implementing a new strategy is complex and it is important to perform restructuring in order to effectively apply a strategy. A restructuring process helps to easily adopt a strategy without complexities.

4 0
3 years ago
Pharoah Company sells merchandise on account for $3600 to with credit terms of 2/14, n/30. Blue Spruce Corp. returns $600 of mer
aleksandr82 [10.1K]

Answer:

The journal entry to record the merchandise return and the payment should be:

Dr Cash 2,940

Dr Sales discount 60

Dr  Sales returns and allowances 600

    Cr Accounts receivable 3,000

The second entry must be made to record the increase in inventory:

Dr Merchandise inventory 600

    Cr Sales returns and allowances 600

Explanation:

The sales returns and allowances account is used to record returned merchandise, while the sales discount account is used to record discounts for early payments or other types of sales discounts.

3 0
3 years ago
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