Answer:
A negative shock to oil prices will mean that now production becomes cheaper. This will cause the aggregate supply curve to shift rightwards and cause prices to fall and the output level to increase. The fall in prices will be short term however as over time the prices will adjust upwards to the point A which is the original market price.
Answer:
B) NDPFC + Indirect Taxes
Explanation:
Net domestic product (NDP) is obtained by subtracting depreciation from gross domestic product (GDP), and it can be calculated at market price (NDPmp) or at factor cost (NDPfc):
- NDPmp = GDPmp – depreciation
- NDPfc = GDPmp – depreciation – indirect taxes
If we substitute NDPfc into option B, we will get:
NDPmp = NDPfc + indirect taxes
NDPmp = (GDPmp - depreciation - indirect taxes) + indirect taxes
NDPmp = GDPmp - depreciation
Answer:
See attached picture.
Explanation:
See attached picture for explanation.
In this scenario the type of tax his tenants pay is called Indirect tax
Answer:
The dates for the interest and maturity payments are fixed.
Explanation:
When a company issues bonds instead of stock, one of the disadvantages of doing so is that they have to pay the coupons or the full face value of the bonds at specific dates. Either they pay coupons annually or semiannually, and the face value is paid at maturity.
Since the dates are set beforehand, the company has to have the funds for these payments set aside. Instead, if the company would have issued stock, it would have greater freedom in deciding when and how much it should pay as dividends.
