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stellarik [79]
3 years ago
5

Which of the following statements is correct?a. A decrease in the size of a tax always decreases the tax revenue raised by that

tax.b. A decrease in the size of a tax always decreases the deadweight loss of that tax.c. Tax revenue decreases when there is a small decrease in the tax rate and the economy is on the downward-sloping part of the Laffer curve.d. An increase in the size of a tax leads to an increase in the deadweight loss of the tax only if the economy is on the upward-sloping part of the Laffer curve.

Business
1 answer:
levacccp [35]3 years ago
4 0

Answer:

A decrease in the size of a tax always decreases the deadweight loss of that tax.

Explanation:

Deadweight loss of tax is defined as the harm that is caused by tax to economic efficiency and prodction. It measures by how much taxes reduces the standard of living of a population.

Deadweight loss is the difference between to tax imposed and the reduction in production level it causes.

A decrease in the size of tax will give more income free to invest in production, therefore the production level will increase. This reduces the deadweight loss.

Effect of tax on deadweight is illustrated in the attached.

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Sudoku Company issues 24,000 shares of $8 par value common stock in exchange for land and a building. The land is valued at $236
nikitadnepr [17]

Answer:

The journal entry for the issuance of the stock is shown below:

Explanation:

Land A/c....................................................................................Dr    $236,000

Building A/c...............................................................................Dr    $378,000

 Common Stock A/c..................................................................................Cr $192,000

 Paid in Capital in excess of par value of Common stock A/c.......Cr   $422,000

Working Note:

Common Stock = Number of shares × Rate per share

= 24,000 × $8

= $192,000

Paid in Capital in excess of par value of Common stock = (Land + Building) - Common Stock

= ($236,000 + $378,000) - $192,000

= $614,000 - $192,000

=$422,000

7 0
3 years ago
A convention is best described as: a) A large marketplace for trading b) A legislative meeting c) A large meeting dedicated to a
Archy [21]

Answer:

Option C                  

Explanation:

In the context of a conference, a convention is indeed a assembly of individuals that occur at an agreed location and time either to address or participate in a mutual interest. The most commonly organised conventions are focused on trade, career and fanbase.

Conventions are mostly organised and managed by skilled gathering and conference managers, sometimes by the event organising company's employees or by independent experts, sometimes in exact description. Many big cities should have a conference centre devoted to organising activities like these.

8 0
3 years ago
The dividend growth model: Multiple Choice is only as reliable as the estimated rate of growth can only be used if historical di
ddd [48]

Answer: The correct answer is "is only as reliable as the estimated rate of growth".

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<u>This happens because it assumes that the growth that the company will experience is constant.</u>

3 0
3 years ago
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4 years ago
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Explanation:

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