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Gekata [30.6K]
3 years ago
14

If a tax on unhealthy food items like soda and candy bars causes people to purchase less of these items and eat more healthful a

lternatives. Which principle of economics does this illustrate?
A) Rational people think at the margin.B) The cost of something is what you give up to get it.C) People respond to incentives.D) People face tradeoffs.
Business
1 answer:
White raven [17]3 years ago
8 0

Answer:

The correct answer is C) People respond to incentives.

Explanation:

People respond to incentives is the fourth principle in Economics. For this particular case, adding tax to unhealthy food is a disincentive to buy it and at the same time an incentive to buy healthy food. This happens because incentives make people act, in a positive or negative way towards a certain product, and because <em>rational people</em> use cost and benefit comparisons to buy something.

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Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends.
kifflom [539]

Answer:

P₀ = $12.23

Explanation:

Div₃ = $1.25

Div₄ = $1.65

Div₅ = $2.178

Div₆ = $2.30868

first we must calculate the terminal value using the dividend discount model = $2.30868 / (17% - 6%) = $20.988

now we must discount all the future dividends + terminal value

P₀ = $1.25/1.17³ + $1.65/1.17⁴ + $2.178/1.17⁵ + $20.988/1.17⁵ = $12.23

5 0
3 years ago
James company is paid $6,000 in dividends from mark corp. on its equity investment. james lacks significant influence over mark
Darina [25.2K]

James Company is paid $6,000 in dividends from Mark Corp. on its equity investment. James lacks significant influence over Mark Corp. James Company should-----credit dividend revenue

<h2>Dividend Revenue Definition:</h2>

A dividend is defined because the fraction of the earnings of an organization that will be distributed among shareholders. Dividend revenue is that the income the individual shareholders or investors would receive according to the number of shares held.

<h3>Where is dividend in balance sheet?</h3>

When a corporation issues a stock dividend, it distributes additional quantities of stock to existing shareholders consistent with the number of shares they already own. Dividends impact the shareholders' equity section of the company balance sheet—the retained earnings, particularly .

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5 0
1 year ago
A standard owner's title insurance policy generally protects
Mazyrski [523]

Answer:

B.

Explanation:

It shields the new owner of the property from losses that could result unexpected claim to the property by a third party.

8 0
3 years ago
Corporations differ from partnerships and other forms of business association in two ways. One of these is that:________.
8090 [49]

Answer: c. they must be publicly registered or in some way officially acknowledged by the law.

Explanation:

Corporations tend to have many shareholders who would get hurt if the company fails and for this reason they are regulated by the law. They must be publicly registered to allow people to purchase and sell shares and they must have the official acknowledgement of the law.

The formation of a corporation can be complicated and require a relatively high number of legal processes and corporations are not regulated by the Federal Trade Commission.

Also, even though shareholders are technically entitled to the company's profits, they don't get to collect it immediately because the company needs money to function and grow.

7 0
3 years ago
Many students review course material at various times during a semester so they will be prepared for the final exam. these stude
kotegsom [21]
This best illustrates the value of the spacing effect.
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4 0
3 years ago
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