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babymother [125]
3 years ago
10

Evaluate the economic consequences of increasing progressive taxes in order to redistribute income (6)

Business
1 answer:
Troyanec [42]3 years ago
4 0

Answer:

Increasing progressive taxes in order to redistribute income may be seen as a fair and noble thing, but such measure may have several unintended consequences.

Explanation:

One consequence is that if taxes are raised too high on the highest earners, these people may simply leave the country for another one where taxes are lower. Wealthy people have the means to do so in the modern economy.

Another consequence would occurr if the taxes are raised too high on corporations. Corporations may either leave the country as well, or pass through the higher costs to the consumers.

All in all, progressive taxation is seen as a fair system by many economists, but it should be implemented with care, and by making cost/benefit analysis first.

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Suppose two companies own adjacent oil fields. Under the two fields is a common pool of oil worth $60 million. For each well tha
AlekseyPX

Answer:

Each company drills two wells and experiences a profit of $22 million.

Explanation:

If each company acts independently and drills two oil wells each they will have a total of 4 wells each worth (60 million ÷ 4= $15 million.

Each company will have two oil wells which equals (2* 15 million = $30 million)

But each company incurs cost of $4 million per well. That is total cost of $8 million.

Therefore the profit for each company will be $30 million - $8 million= $22 million

8 0
3 years ago
Advances in technology have reduced the cost of manufacturing MP3 players if demand does not change
Andrews [41]
Because MP3 players cost less to make, if demand does not change, there will be more profit. This is because there would be the same amount demand and less money being made into making the product, meaning less expense, which means a bigger profit.
5 0
3 years ago
How do horizontally organized companies differ from traditionally organized companies
GenaCL600 [577]

Horizontally organised companies do not have a strict hierarchy of posts with increasing importance and allow more freedom to the employees.

Explanation:

Horizontally organised companies function very differently from traditional companies as the traditional structure is a pyramidal vertical structure.

<u>In this structure people at the top are few and are at higher  positions and issue orders which are distributed by managers to employees.</u>

<u>In the horizontal structure the managers are taken out of play and even the employees make important decisions for the company.</u> This allows for greater morale and freedom but can only work for small and medium sized businesses in certain niches.

7 0
3 years ago
Rachel is a financial investor who actively buys and sells in the securities market. Now she has a
Lostsunrise [7]

a.

weights = 13500+7600+14700+5500/4 = 10325

these other ones I can't type them here .if yuu want the other answers you can inbox you email so that I send you scanned answer for the all question

5 0
3 years ago
The information content of a dividend increase generally signals that: A. the firm has a one-time surplus of cash.B. the firm ha
Dovator [93]

Answer:

E

Explanation:

Dividends thereafter will be lower

3 0
3 years ago
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