Answer:
True, True
Explanation:
In terms of economic efficiency in the market for pollution. It does not matter if the government distributes the permits or auctions them off, as long as if firms can sell the permits to each other. The only difference would be that the government could make money if it auctioned the permits off, thus allowing it to reduce taxes, which would help reduce the deadweight loss from taxation in other markets. Some deadweights loss could also occur if firms use resources to lobby for additional permits.
If government chooses to distribute the permits among firms, the firms could sell the permits to each other, this allocation of permits among firms would not matter for efficiency, but affects the distribution of wealth, and those that sold their permits are better off.
Answer:
inflation
Explanation:
The real interest rate charged on a loan = nominal interest rate - inflation rate
The inflation rate is the change in the general level of prices, and as the inflation rate increases, the purchasing power of the currency decreases. For example, if you purchase 50 cans of Coke with $50 this year, and the inflation rate is 10%, you will only be able to purchase only 45 cans next year with the same $50.
Answer:
LIEN THEORY
Explanation:
Based on the scenario being described it can be said that this state is a lien theory state, in which the court is enlisted to order and oversee the foreclosure procedure. In such a state, the buyer/borrower holds the deed to the real estate property until the mortgage expires and promises to make the mortgage payments that were previously agreed upon in the financial agreement.
Answer:
The company should order 100 units to minimize total inventory cost.
Explanation:
Given,
Annual Demand, D = 2,000 units
Order cost, S = $20
Purchase cost = $40
Holding cost, H = Purchase cost x percentage of holding cost
Holding cost = $40 × 20%
Holding cost = $8
We know, the company should order the highest number of products with a minimum cost, and for that, the company uses economic order quantity. Hence,
Economic Order Quantity (EOQ) =
EOQ =
EOQ =
EOQ = 100
Answer:
The correct answer is $132,664.89.
Explanation:
According to the scenario, the given data are as follows:
Present value (PV) = $50,000
Rate of interest (r) = 5%
Time period (n) = 20 Years
So, we can calculate future value by using following formula:
Future value = PV × (1 + r)^(n)
= $50000 × ( 1 + 5% )^20
= $50000 × (1 + 0.05)^20
= $132,664.89
Hence, After 20 years land will be worth $132,664.89.