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Karolina [17]
3 years ago
10

A deadweight loss is a consequence of a tax on a good because the tax a. induces the government to increase its expenditures. b.

induces buyers to consume less, and sellers to produce less. c. increases the equilibrium price in the market. d. imposes a loss on buyers that is greater than the loss to sellers.
Business
1 answer:
zalisa [80]3 years ago
7 0

Answer:

B) induces buyers to consume less, and sellers to produce less.

Explanation:

Taxes are a necessary evil since they always increase the price of the goods and services that consumers buy and decrease the amount of money that producers receive from selling their goods and services. But taxes are necessary and unavoidable.

But once a market assumes all the effects of existing taxes it reaches an equilibrium price that both consumers and producers are satisfied with. If a new tax is levied than the deadweight losses are greater since consumer surplus and producer surplus are both reduced. This will lead to a reduction in the incentive that both consumers and producers have to engage in transactions. Many times consumers will substitute heavily taxed goods for other goods since they feel they are getting more from consuming those goods (consumer surplus). The same happens to producers, many producers will change their heavily taxed goods for other goods.

If the price elasticity of demand or supply of a certain good is large (elastic demand and supply), the deadweight loss will be greater.

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Landmoon Inc. has 10,800 shares of common stock outstanding at a price of $42 per share. It also has 245 shares of preferred sto
zhuklara [117]

Answer:

 0.0210

Explanation:

The computation of the weight of the preferred stock is shown below:

Particulars Shares    Price Value ( Shares × Price)   Weight ( Value ÷Total value)

Equity 10,800   $42         $4,53,600                0.4179

Preferred Stock 245 $93         $22,785                        0.0210

Bonds 580           $1,050         $6,09,000                0.5611

Total value                                     $1,085,385

for computing the weight we simply divide the value of the preferred stock with the total value

4 0
2 years ago
How to write a recommendation letter for a student?.
frutty [35]

Answer:

Ask the student for academic information. ...

Address your letter accordingly. ...

Introduce yourself and your qualifications. ...

Include details about your academic relationship with the student. ...

Highlight the student's qualifications with examples. ...

Conclude your letter.

Explanation:

7 0
2 years ago
Blue Spruce Corp. took a physical inventory on December 31 and determined that goods costing $229,500 were on hand. Not included
Irina18 [472]

Answer:

Blue Spruce report as its December 31 inventory is $285,000

Explanation:

Correct inventory

= 229,500 + goods purchased FOB shipping point 30,000 + goods sold FOB destination 25,500

= 229,500 + 30,000 + 25,500

= 285,000

3 0
2 years ago
suppose that you are a member of the board of governors of the federal reserve system. the economy is experiencing a sharp rise
vivado [14]

The board of governors of the federal reserve system. The interest rate that a bank charges another bank for an overnight loan may be referred to as the federal fund rate. In other terms.

It refers to the interest added to any overnight are borrowing or lending of excess reserves by others.The Federal Reserve uses the Federal Fund Rates to help keep inflation under control and promote healthy economic growth.In this situation, where a nation's economy is seeing a strong rise in inflation, I would advise raising the federal funds rate to help rein in the rising inflation rate.The relative abundance or scarcity of reserves at the Federal Reserve is directly tied to both the inflation rate and the Federal Funds Rate.If an economy is going through a sharp and protracted inflationary tendency, I'll suggest the following adjustments.Increase in reserve ratio: I'll do that. Discount percentage: I'll raise the discount percentage.Open market operations: I propose reducing the money supply by increasing the sale of government bonds.

To know more about Fund rates visit:

brainly.com/question/23732411

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4 0
1 year ago
Crane Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $28 per year. During
Ugo [173]

Answer:

A. Debit unearned subscription revenue $21,000

Credit Subscription Revenue $21,000

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Credit Earned Subscription Revenue $63,000

Explanation:

A. Preparation of the adjusting entry at December 31, 2022, to record subscription revenue in December 2022.

Debit unearned subscription revenue $21,000

Credit Subscription Revenue $21,000

[($28 per year*9,000)/12]

(Being to record subscription revenue )

B. Preparation of the adjusting entry at March 31, 2023, to record subscription revenue in the first quarter of 2023.

Debit Unearned Subscription Revenue $63,000

Credit Earned Subscription Revenue $63,000

[($28 per year*9,000)/12*3]

(Being to record subscription revenue in the first quarter)

8 0
2 years ago
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