Factors such as price and production costs help determine the market supply curve.
Most states impose sales tax on some goods and services as a means of generating revenue. However, sales taxes also influence consumer behavior. These influences, along with the basic financial impact of sales tax, are evident on supply and demand curves when sales tax rates increase or a state imposes a new sales tax.
Answer: A. Aggregate demand does not affect the quantity of output.
Explanation: Aggregate supply curve is perfectly vertical in a long run, Economist believed that the changes in aggregate demand only caused a temporal change in an economy output
Aggregate supply in a short run, the quantity supplies increase as price rise.
Aggregate demand does not affect the quantity of output If the aggregate supply is vertical.
Answer:
Because the government can use her sovereign power to both mitigate negative externalities as well as encourage positive externalities.
Explanation:
A positive externality occurs when the transaction between a producer and end user benefits a third party that did not take art in the process.
A very Good example is Education. There is a third party benefit to the society when we have more educated citizens.
A negative externality happens when the business transaction between a manufacturer and consumer affects a third party adversely. a typical example is cigarettes. When cigarettes is consumed by the end user, the smoke can affect the health of a third party that was not part of the initial transaction.
To deal with both positive and negative externalities, government intervention is very crucial.
Government encourages positive externalities like education by subsidizing the cost of attending a school. They also enact laws that make basic education compulsory.
In the case of negative externalities, Government can intervene with a ban on producing harmful goods and also set a legislation about smoking in public laces to mitigate the health complications caused by third party inhalation.
Answer: If the required return is 11 percent, what is the project's NPV? (Do not round intermediate calculations and round your answer to two decimal places, e.g., 32.16.)
Explanation:
Answer:
Bonds
Explanation:
Bonds are financial instruments that are used to obtain funding from the bond holders. It is a debt security that is issued by a government or corporation to investors.
When investors buy bonds the funds are used by governments for its operations and various projects. Interest is paid on the bonds.
Bonds can be municipal bonds or corporate bonds.
Unlike shares bonds does not grant the holder an equity or ownership stake in the company, rather it grants a creditor stake.
