All categories

4 years ago

A tax of €1.00 per litre on petrol

Business

1 answer:

Anni [7]4 years ago

3 0

Answer:

The correct answer is option a.

Explanation:

If a tax worth €1.00 per liter on petrol is imposed it will create a tax wedge of €1.00 between the price the buyers pay and the price the sellers receive.

A tax wedge can be defined as the deviation from the equilibrium price and equilibrium quantity due to the imposition of taxes.

When a tax is imposed on a product, the consumer and producer both have to share the tax burden. The price paid by the consumers increases and the price received by gets reduced.

The quantity of product gets reduced as well.

You might be interested in

Eclipse Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Fact

Korolek [52]

Answer and Explanation:

The computation is shown below:

a. Factory overhead rate for Factory 1 is

= Estimated factory overhead cost ÷ Estimated machine hours for the year

= $1,516,700 ÷ 52,300

= $29

b. Factory overhead rate for Factory 2 is

= Estimated factory overhead cost ÷ Estimated direct labor hours for the year

= $1,074,600 ÷ 29,850

= $36

c. The journal entry is shown below:-

1. Work in process Dr, $126,150 (4,350 × $29)

To Factory overhead $126,150

(To record the factory overhead)

2. Work in process Dr, $97,200 (2700 × $36)

To Factory overhead $97,200

(To record the factory overhead)

d. The balance of the factory overhead amounts for each factory as follows:

For Factory 1

= $124,880 - $126,150

= $1,270 Credit Overapplied

For Factory 2

= $98,910 - $97,200

= $1,710 Debit Underapplied

7 0

3 years ago

RISRS and Rewards of Information Systems: Mastery Test

jeka57 [31]

Answer:

A. giving proper training

Explanation:

A common issue in IT and change management is that employees create a barrier to change (implementing a new information system). Of course, everyone prefers to stay in their comfort zone, but most of the times it is essential to adopt changes effectively. so that the whole organization can progress.

Giving proper training is the answer, as their lack of confidence mainly originates from their own lack of confidence regarding the software know-how. When their self-esteem regarding the IS raises, they stop seeing it as a threat to their comfort zone and start seeing it as a tool that aids their work, the user confidence will increase.

Other answers are related to technical things that do not improve user confidence.

7 0

3 years ago

Read 2 more answers

The suggestion that disparate impact should be measured only at the ______ ignores the fact that title vii guarantees these indi

Yuri [45]

bottom line. This is a direct quote from the textbook by Cengage called Employment and Labor Law.

3 0

3 years ago

Alice and Bob entered into a forward contract some time ago. Alice has the long position, while Bob has the short position. The

mart [117]

Answer:

$ - 1.96

Explanation:

After three months, Alice (long the contract) can buy the underlying by paying the delivery price of $40 which is $2 less than $42 the long position would have to pay if the contract was entered today.

DATA

Delivery price = $40

The three-month risk-free interest rate (with continuous compounding) =8%.

The current forward price = $42

Solution

So based on the present situation, Alice would be in $2 profit at the end of 3 months and Bob would be in $2 loss

Present value of Bob's loss (with continuous compounding) = 2\times e^{-0.08\times 0.25}

Present value of Bob's loss (with continuous compounding) = $1.96

The value of Bob's position is $ - 1.96

6 0

4 years ago

The social cost of a transaction is _________.

dolphi86 [110]

Answer:

The correct answer is letter "C": the sum of private and external costs.

Explanation:

<em>Neoclassical economics</em> -based on supply and demand as market drivers- define the social costs of transactions as the sum of private costs inherent in the operation and the costs consumers set because of being exposed to the transaction or the external costs. This cost differs from the <em>private costs</em> which are the expenditures a producer incurs in the production of a good or service.

5 0

4 years ago

Read 2 more answers