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steposvetlana [31]
2 years ago
5

The city of Johnstown decides to build a new stadium to attract a basketball team from the city of Rosendale. One economic advis

or suggests that the stadium should be financed by a 2-year sales tax of 10%, while another advisor suggests that the stadium should be financed with a 20-year sales tax of 1%. Assume the interest rate is zero. Which approach will yield a more efficient outcome? Why?
Business
1 answer:
ivolga24 [154]2 years ago
4 0

Answer:

A 20-year sales tax of 1% will be more efficient.

Explanation:

The reason is that the major component of goods that are usually affected by general sales are elastic goods, and therefore a 10% sales tax for 2 years will increase price of the goods and then have a negative effect on the quantity demanded.

A 10% sales tax will also negatively affect the stadium financing within the expected 2 years as it will result in a dead weight loss in the economy.

Since the interest rate is zero, this indicates that the economy will not incur any loss by paying back the debt over longer time of 20 years. Therefore, a 20-year sales tax of 1% will be more efficient.

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2 years ago
Trade adjustment assistance promotes political support for free-trade agreements by:
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Answer:

option C is the right answer

Explanation:

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3 years ago
The balance in Discount on Bonds Payable that is applicable to bonds due in three years would be reported on the balance sheet i
tankabanditka [31]

The balance in Discount on Bonds Payable that is applicable to bonds due in three years would be reported on the balance sheet in the section entitled of Long-term liabilities.

What is Long-term liabilities?

Long-term liabilities can be regarded as loans aa well as other financial obligations that the repayment schedule would be expected to last over a year.

Some of the examples long-term liabilities are;

  1. deferred revenues
  2. post-retirement healthcare liabilities.
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It should be noted that balance in Discount on Bonds Payable that has a due time of three years would be reported at Long-term liabilities section.

Learn more about Long-term liabilities at:brainly.com/question/25596583

4 0
2 years ago
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A major agricultural produce used in the production of ethanol is corn which undergoes fermentation. Some countries who use E-85 as a source of fuel include; the United States, as well as Sweden.

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True

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3 years ago
Read 2 more answers
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