This phenomenon best illustrates how a progressive income-tax system serves as an automatic stabilizer for the economy.
<h3>What is an automatic stabilizer?</h3>
Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of external agents . Examples include progressive tax and transfer payments. A progressive tax is a tax structure where those who earn higher income are taxed more and those that earn less pay less amount of tax.
In an expansion, progressive tax increases the tax paid and this reduces disposable income. In a recession, tax paid is reduced and this increases disposable income
Here are the options:
increases crowding out in the economy
decreases real interest rates in the economy
offsets the timing problem for fiscal policy
Serves as an automatic stabiler for the economy
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Answer:
33.33%
Explanation:
Given:
Sales revenue = $360,000
Cost of goods sold = $240,000
Net income = $53,000
Now,
the gross profit = Sales revenue - Cost of goods sold
or
The gross profit = $360,000 - $240,000 = $120,000
Thus,
the company's gross profit ratio = 
or
The company's gross profit ratio = 
or
The company's gross profit ratio = 33.33%
Answer:
a. mostly cigarette buyers.
Explanation:
The law of demand states an inverse relationship between quantity demanded of a good and it's price, keeping other factors affecting demand as constant.
Price elasticity of demand refers to the degree of responsiveness of quantity demanded to a change in price.
Alcohol and cigarettes are exceptions to the law of demand since in their case, the factor of addiction presides which outweighs rational decision making.
Thus, price elasticity of demand of cigarettes is inelastic. So a marginally higher price charged for cigarettes will not reduce their consumption.
A new tax on cigarettes would raise their prices. The manufacturers, to cover such taxes and maintain the same margin as before would further raise the prices of cigarettes further.
Thus, the tax burden would be shifted to the consumers and hence majorly borne by them.
Answer:
The answer is true. It is a true statement
Explanation:
When a product reaches its maturity life cicle there is promotion focuses on reminder advertising and keeping customers involved. In addition the emphasis is placed on holding market share through further differentiation and attracting new buyers.
It is true that delivering bad news without knowing the details tends to cause unnecessary anxiety among the receivers.
Receivers is an element in communication channel. The Receivers means the party decoding the message passed across by the sender.
- If detailed information about a bad news is unknown and communicated to the receiver, there is greater chance it will cause unnecessary fear and anxiety and leading to doubtfulness.
- Hence, it is very important to know the details of the bad news to facilitate detailed delivery to the receiver.
Therefore, It is true that delivering bad news without knowing the details tends to cause unnecessary anxiety among the receivers.
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