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3 years ago

The government increases taxes. What might be a reason for this change in fiscal policy?

2 answers:

Crank3 years ago

8 0

A; a deficit due to improving nationwide public transportation. Surplus in this case means that we have left over money.

morpeh [17]3 years ago

7 0

Answer:

A deficit due to improving nationwide public transportation

Explanation:

Fiscal policy is the instrument by which the government collects taxes to use resources in areas that require public investment. When the government spends more than it collects, there is a deficit. To finance this deficit, one of the government's alternatives is to raise taxes. On the contrary, when the government spends less than it collects, there is a surplus. In this case, the government could lower taxes.

In the case narrated, the government raises taxes. Therefore, this is feasible to cover the public account deficit. Fiscal faith only refers to direct government spending in areas of public interest, such as transportation, education, health, welfare, and so on. The relationship between the government and the financial market is not considered in the fiscal deficit, it is separated into another specific account. Therefore, the only correct alternative is that the government has raised taxes to cover the fiscal deficit of transport infrastructure spending, which is a sector that requires direct government investment.

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Given below is a numbered list of cost terms. For each of the definition statements that follow, place the number of the cost te

leva [86]

Answer:

The correct answers are the following:

a - 4 Sunk

b - 5 Opportunity

c - 3 Fixed

d - 2 Variable

e - 6 Incremental

f - 1 Recurring

g - 7 Direct

h - 8 Non-recurring

Explanation:

a) Sunk costs are those that have already occurred in the past and they can not be recovered again so therefore that they are not relevant at the time of taking decisions regarding the futue.

b) Opportunity costs are those that try to measure and show the sacrifice done at the time of making a decision when that sacrifice represents the best second option that the person could have done.

c) Fixed costs are those that are always the same amount and do not change with the activity level of the production of the company.

d) Variable costs are those that do change with the amount of activity level that the company has during the production process.

e) Incremental costs are those that increase the cost level of the production while the output level increases as well, so they are a concept on the margin.

f) Recurring costs are those that tend to repete continously in the production process so the company already know how much the amount of the cost is.

g) Direct costs are those that the company associates with the production process regarding the commodities and all the primary sources that are needed to produce the good and therefore that they impact directly in the production and in the cost of the final product.

h) Non-recurring costs are those that the company are not familiar with due to the fact that they do not repete often and therefore tend to happen once in a while.

4 0

3 years ago

When someone owns an asset (such as a share of stock) that rises in value, he has an "accrued" capital gain. If he sells the ass

puteri [66]

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.

6 0

3 years ago

Maggie Stewart loves desserts. But, due to weight and cholesterol concerns, she has decided that she must plan her desserts care

nika2105 [10]

Answer:

The option that maximizes Maggie's taste index is 1 snack bar and 2 ice creams

Explanation:

snack bar ice cream

37 grams 65 grams

120 calories 160 calories

5 grams of fat 10 grams of fat

Maggie wants to consume up to 450 calories and 25 grams of fat, but she needs at least 120 grams of dessert per day. Ice cream taste 95, snack bars 85.

maximize taste index = [85(37X) + 95(65Y)] / (37X + 65Y)
5X + 10Y ≤ 25 ⇒ CONSTRAINT 1
120X + 160Y ≤ 450 ⇒ CONSTRAINT 2
37X + 65Y ≥ 120 ⇒ CONSTRAINT 3
X ≥ 0 ⇒ CONSTRAINT 4
Y ≥ 0 ⇒ CONSTRAINT 5

maximum possible combinations following constraint 1, 4 AND 5:

option 1: 1 snack bar - 2 ice creams (5 + 20 = 25)
option 2: 2 snack bars - 1 ice cream (10 + 10 = 20)
option 3: 3 snack bars - 1 ice cream (15 + 10 = 25)

possible combinations following constraint 2:

option 1: 1 snack bar - 2 ice creams (120 + 320 = 440)
option 2: 2 snack bars - 1 ice cream (240 + 160 = 400)

possible combination following constraint 3:

option 1: 1 snack bar - 2 ice creams (37 + 130 = 167)
option 2: 2 snack bars - 1 ice cream (74 + 65 = 139)

since we only have two possibilities, we can calculate which one generates the highest taste index

maximize taste index = [85(37X) + 95(65Y)] / (37X + 65Y)

option 1: 1 snack bar - 2 ice creams = [85(37) + 95(130)] / (37 + 130) = (3,145 + 12,350) / 167 = 92.78
option 2: 2 snack bars - 1 ice cream = [85(74) + 95(65)] / (74 + 65) = (6,290 + 6,175) / 139 = 89.68

5 0

3 years ago

The financial statements for Harold Corporation contained the following information: Accounts receivable $ 5,000 Sales revenue 7

worty [1.4K]

Answer: $45,000

Explanation:

Given that,

Accounts receivable = $ 5,000

Sales revenue = $75,000

Cash = $15,000

Salaries and wages expense = $20,000

Rent expense = $10,000

Net income = Sales revenue - Salaries and wages expense - Rent expense

= $75,000 - $20,000 - $10,000

= $45,000

4 0

2 years ago

Diane paid $600,000 for a six-unit apartment building. The gross income is $900 per month per unit, with annual expenses of $16,

Stells [14]

Answer:

Explanation:

First calculate annual gross income. 900 x 6 x 12 = 64,800. Next determine the net income. 64,800 - 16,880 = 48,000. 48,000 / 600,000 = .08 or 8%

7 0

2 years ago