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Vanyuwa [196]
3 years ago
5

If the consumption of a product or service involves external benefits, then the government can improve efficiency in the market

by Multiple Choice a. providing a subsidy to correct for an overallocation of resources. b. providing a subsidy to correct for an underallocation of resources. c. imposing a corrective tax to correct for an overallocation of resources. d. imposing a corrective tax to correct for an underallocation of resources.
Business
1 answer:
likoan [24]3 years ago
8 0

Answer:

b. providing a subsidy to correct for an underallocation of resources.

Explanation:

When the external benefit of an activity exceeds cost, the activity generates postive externality.

Activities that generate positive externality are usually under produced usually because of the high cost of production . Government can encourage production of activities that generate positive externality by giving subsidy which reduces the cost of production and increases production.

I hope my answer helps you

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Charu Khanna received a Form 1099-B showing the following stock transactions and basis during 2019 Stock Date Purchased Date Sol
AysviL [449]

Answer:

Charu Khanna

The Net capital loss is:

= $2,000.

Explanation:

a) Stock Transactions and Data during 2019:

Stock                                  Date      Date Sold  Sales Price ($) Cost Basis ($)

                                      Purchased

4,000 shares Green Co. 06/04/07 08/05/19       12,000              3,000

500 shares Gold Co.        02/12/17 09/05/19      54,000            62,000

5,000 shares Blue Co.   02/04/08  10/08/19       18,000            22,000

100 shares Orange Co.     11/15/18   07/12/19       19,000            18,000

Total                                                                   $103,000       $105,000

Net capital loss:

Long-term capital loss = $3,000

Short-term capital gain = $1,000

Net capital loss =            $2,000 ($3,000 - $1,000)

8 0
2 years ago
Please follow me..........​
GarryVolchara [31]

Answer:

okay I will :) if I do can I get brainliest?

8 0
3 years ago
Read 2 more answers
Jasper makes a $31,000, 90-day, 6.5% cash loan to Clayborn Co. The amount of interest that Jasper will collect on the loan is:__
pochemuha

Answer:

the amount of interest that is collected is $503.75

Explanation:

The computation of the amount of interest that is collected is shown below:

= Cash loan × number of days ÷ total number of days × rate of interest

= $31,000 × 90 days ÷ 360 days × 6.5%

= $503.75

Hence, the amount of interest that is collected is $503.75

This is the answer but the same is not provided in the given options

We simply applied the above formula so that the correct value could come

And, the same is to be considered

4 0
2 years ago
Jurisdiction E spends approximately $7 million each winter on snow removal. The jurisdiction is considering adding a new income
frez [133]

Answer:

'Taxes' can be defined as a compulsory contribution to the state's or country's revenues, which are levied by the governments on personal incomes of individuals or profits of the corporate, or on some transactions.

Taxes are the main source of revenues for any government, through which it receives the necessary funds to spend on various activities it undertakes for public welfare and maintaining the law and order and security of the nation.

Many theorists believe that every tax should be evaluated on certain standards and the following four standards have been mentioned for evaluating whether taxes are good or not:

  1. Taxes should be sufficient to fulfill the government's requirements
  2. Taxes should be convenient for the government to implement and for the citizens to pay
  3. Taxes should be efficient economically
  4. Taxes should be fair

There may be certain provisions introduced in the federal tax system, which are targeted to induce certain behaviors or shift people's attention towards certain activities. These provisions are called tax preferences

Does this proposed change in Jurisdiction E's tax law meet the definition of a tax preference? Explain briefly.

In the given question, the decision of the jurisdiction to give deduction to the people for the snow removal equipment they purchase, is definitely a tax preference as it induces people to invest in snow removing machines, as they are getting full deduction of such expense in income taxes.

By having this provision, the government is motivating people to invest in these machines, and people also have the benefit of having such machine with them, and also getting tax deduction for such expense, so getting such machine almost free (this applies to people who have incomes in such tax bracket only). Thus it is the way of government in encouraging people to buy snow removing machines and reduce the burden on the government. Thus it is clearly a tax preference.

Jurisdiction E forecasts that the proposed change will decrease its annual tax revenues by $250,000 but will improve the jurisdiction's financial condition by $300,000. On what assumptions is this forecast based?

The forecast regarding decrease in annual tax and improvement in financial condition is based on the assumptions of people taking benefit of such a provision, and actually investing in snow removing machines.

The jurisdiction believes that people will purchase the machines and make claims for deductions, effecting the tax revenue by $250,000. But at the same time, as many people will themselves remove the snow, the government doesn't have to spend so much on snow removal and thus make the savings of $300,000

6 0
3 years ago
Harrods PLC has a market value of £136 million and 4 million shares outstanding. Selfridge Department Store has a market value o
Lisa [10]

Answer:

the stock price after the acquisition is $37.30

Explanation:

The computation of the stock price after the acquisition is given below:

= Worth of combined synergy ÷ (outstanding shares = harrods shares)

= £194 million ÷ (4 million + 1.2 million)

= £194 million ÷ 5.2 million shares

= $37.30 per share

hence, the stock price after the acquisition is $37.30

We simply applied the above formula so that the correct answer could come

5 0
3 years ago
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