Answer:
a. required to pay a tax of $0.45 per gallon of gasoline sold.
Explanation:
The marginal external cost shows the difference between the private cost and the social cost. Also it should be the tax imposed amount. In the given case, the value is of $0.45 this represent that there is the tax of $0.45 that should be imposed on the producers in order to internalize the external cost
Therefore, the option a is correct
Answer:
$10,200
Explanation:
The computation of the deferred income tax expense or benefit is shown below:
Favorable temporary difference = $50,000
Less: Unfavorable temporary difference -$20,000
Net favorable temporary difference $30,000
We assume the tax rate is of 34%
So, the deferred tax expense is
= $30,000 × 34%
= $10,200
By finding out the net favorable temporary difference and then multiplied with the tax rate we can get the deferred tax expense and the same is shown above
A sinking fund provision is attractive; to investors, so bonds with a sinking fund provision generally have lower yields than bonds without.
What is sinking fund provision?
Sinking provision means setting funds over time which are meant to repay the bond principal amount at bond maturity , in other words, a bond with such provision is safe because to a large extent, there would be no default on repayment of principal.
Besides, the fact that sinking fund provision on bonds is attractive means such bonds would earn lower yield as there is an inverse relationship between risk and return
Find out more about sinking fund provision on:brainly.com/question/14778799
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Full question with options:
A sinking fund provision is ________ to investors, so bonds with a sinking fund provision generally have _______ yields than bonds without.
a. unattractive; higher
b. unattractive; lower
c. attractive; lower
d. attractive; higher
Answer:
Equilibrium Income = 400
Explanation:
Economy is at equilibrium where :
AD (i.e = C + I) = AS (i.e = C + S)
C + I = C + S
I = S
Given I = 80 , S = -80 + 0.4Y
Putting in formula,
80 = -80 + 0.4Y
80 + 80 = 0.4Y
160 = 0.4Y
Y = 160/0.4
Y = 400
