1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Tems11 [23]
3 years ago
9

Which of the following is INCORRECT about a corrective tax? Select one: a. The tax is equal to the marginal damage from pollutio

n at the equilibrium quantity. b. The goal of a corrective tax is to restore efficiency. c. Producer surplus and consumer surplus will increase because the market becomes more efficient. d. One of its drawbacks is that it is hard to measure the extra social cost.
Business
1 answer:
eduard3 years ago
4 0

Answer:

The answer is  letter "C": Producer surplus and consumer surplus will increase because the market becomes more efficient.

Explanation:

Named after English economist Arthur C. Pigou (1877-1959), the Pigovian Tax or corrective tax is a fine imposed against taxpayers for being part of activities that generate negative side effects. According to Pigou, these externalities play a negative role in the market to reach equilibrium.

It is true that the corrective tax encourages market efficiency but it doesn't imply the tax will lead to producer or consumer surplus, since those are actually influenced by basic supply and demand laws, making option "C" a false statement.

You might be interested in
Depreciation:
iragen [17]

Answer:

B. Is the process of allocating the cost of a plant asset to expense.

Explanation:

Depreciation is an expense indicating a reduction in the value of the capital assets due to tear and wear, obsolescence, consumption, time span, etc. It's listed on the income statement debit side. It is a non-cash item that has no effect on the cash balance.

Moreover, it is a process in which there is an allocation of the cost of fixed assets to the expense account over their estimated useful life

4 0
3 years ago
Bonita Industries reported the following year-end information: beginning work in process inventory, $190000; cost of goods manuf
Lunna [17]

Answer:

Bonita Industries's cost of goods sold for the year is $844,000

Explanation:

Beginning work in process inventory, $190000

Ending work in process inventory, $230000

Cost of goods manufactured, $866000

Beginning finished goods inventory, $252000

Ending finished goods inventory, $274000

Cost of Goods Sold = Beginning Finished Goods Inventory + Cost of Goods Manufactured – Ending Finished Goods Inventory

Cost of Goods Sold = $252000 + $866000 - $274000

Cost of Goods Sold = $844000

*Beginning work in process inventory and Ending work in process inventory has already been dealt in cost of goods manufactured calculations.

4 0
3 years ago
On January 1, 2019, Ola Company paid $388,900 for a $400,000 face value 3% corporate bond yielding 4%, interest paid annually on
shutvik [7]

Answer:

B. $15,556

Explanation:

As given in the question

Face value of bond = $400,000

Carrying value of bond = $388,900

Discount from par value = $11,100

Coupon rate = 3%

Bond yielding rate = 4%

Interest revenue for the year = Carrying value of bond x Bond yielding rate

Interest revenue for the year = 388,900 x 4%

Interest revenue for the year = $15,556

The correct option is B. $15,556.

8 0
3 years ago
When two or more persons work together to circumvent internal control procedures and commit a fraud, this is called.
zalisa [80]
The correct answer is is collusion.
5 0
2 years ago
As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 20% of Nursery Supplies Inc
Natalija [7]

Answer:

Nursery Supplies at year-end 76,000,000

Gain on investment 12,000,000

Explanation:

Considering is considered a long-term investment for Florists International and the percentage of owership is significant we use equity method.

value of the investment at year end:

begining 67,000,000

income 60,000,000 x 20% = 12,000,000

cash dividends 10,000,000 shares x 1.5 x 20% = (3,000,000)

ending investment 76,000,000

8 0
3 years ago
Other questions:
  • During finals week, students arrive randomly at the help desk of the computer lab. There is only one technician due to budget cu
    5·1 answer
  • A grocery store is trying to find a new vendor for carrots. Its three criteria are 1. Freshness, 2. Lot Size, and 3. Cost with f
    14·1 answer
  • Division of labor increases in __________. As the food supply grows, not everyone needs to be engaged in food production. Some p
    15·1 answer
  • Differentiate among the following.
    14·1 answer
  • Beginning with __________, a body of law has grown that requires organizations to provide employees with nonhazardous working co
    5·1 answer
  • Adrian and Fran operate their computer tech support company "Best Techs," as an S corporation, file the appropriate incorporatio
    5·1 answer
  • Which item is a biological contaminant?
    14·2 answers
  • The construction industry uses which of the pricing methods
    5·1 answer
  • The principal-agent problem, as applied to the labor market, would have the :
    11·1 answer
  • Respond to the following discussion question(s):
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!