There are different types of investment. The type of investment would be an example of an investment at point B is a stock.
When you look at the graph, you will see a rise from point A to both B. With this, you can know that the asset class that has highest risk and also has the highest return is a stock.
There are different kinds of investments. They includes stocks, real estate, etc. The intention of the buyer is that they will increase the value of their savings/money over time.
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Answer:
b. The demand curve does not reflect the value to society of the good.
Explanation:
An externality is a financial term alluding to an expense or advantage caused or got by an outsider. Nonetheless, the outsider has no power over the making of that cost or advantage.
An externality can either be positive or negative which can be caused by either production or consumption of a good or service. The cost or the benefit can affect an individual or a society as a whole. A typical example of a negative externality is pollution which can cause negative cost to a third party in terms of health expenses. An example of a positive externality on the other hand is when a well educated labor force increase their productivity.
The government and local authorities can control negative externality by imposing taxes and regulation of these products. The government can also overcome negative externality by imposing subsidies on the goods that improve positive externality.
The demand curve however does not reflect the value to society of the good. It only reflects the relationship between the price and the quantity of goods consumed.
Answer:
the income tax liability for the year 2020 is $9,680
Explanation:
The computation of the income tax liability for the year 2020 is as follows:
= (Adjusted gross income) - (itemized deductions) × tax rate
= ($54,000 - $10,000) × 0.22
= $44,000 × 0.22
= $9,680
We assume the tax rate be 22%
hence, the income tax liability for the year 2020 is $9,680
