Answer:
D, decline in total surplus that results from a tax.
Explanation:
Dead-weight loss is also known as excess burden. It is a situation where in there is a loss of economic sufficiency as a result of tax.
This economic sufficiency is when the supply of goods and services aren't met. That is, there is no market equilibrium between demand and supply. Taxes, subsidies, price rise or fall can be the reason for dead-weight loss as it causes the imbalance of demand and supply of goods or services to the consumers through price manipulations.
To calculate dead-weight loss, change in price as well as change in quantity demanded are important factors to consider.
Cheers.
Answer:
It must involve the transfer of resources to another entity.
Explanation:
A liability is defined as an obligation of future outflow of economic benefits that arise as a result of past actions either through sales , exchange of assets or services , or any other business related events.
Before a liability can be recognized , it must satisfy these three conditions
- It must involve probable outflow of economic resources
- A present obligation that arose as a result of past transactions
- It must involve a transfer of resources to another entity
Answer:
<em>The price of peanuts would increase in Malaysia.</em>
Explanation:
Almost all countries of the world are involved in building trade relationships because not every crop or product can be grown in a single company.
A country rich in an item tends to export the extra amounts of that particular product. In exchange, it might import other products which have a short production rate in its own countries.
<u><em> But as we all know, the prices of the imported items are often higher as compared to the local products of a country.</em></u>
Hence, in the scenario mentioned in the question, it is most likely that Malaysia will increase its prices of peanuts imported from United States.
Answer:
The strategy only pays off when the stock price in August is between $44.25 and $55.75. Thus, the answer is b.
Explanation:
The investor net gain on premium from option is $1.25 + $4.5 = $5.75.
The investor has to obligation to buy at $50 and obligation to sell at $50 in August.
As a result, Investor paid-off is described according to the spot price, denoted as x, of Hug-Packing in August as below:
Spot price <$50: 5.75 - (50 - x) = x - 44.25
Spot price = $50: $5.75
Spot price > $50 : 5.75 - ( x -50) = 55.75 - x
Thus, the strategy will pay off only when:
(x - 44.25) > 0 and (55.75 - x) <0 or x is between $44.25 and $55.75.
Thus, the answer is b.
