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Alika [10]
2 years ago
9

) A price change would have the largest income effect on a A) magazine. B) tablet computer. C) piece of clothing. D) car.

Business
1 answer:
weeeeeb [17]2 years ago
7 0

Answer:

d

Explanation:

A change in price leads to two effects :

  • The income effect
  • The substitution effect

The income effect is the change in quantity demanded as a result of a change in real income which affects the consumes purchasing power.

A car constitutes a very large part of a consumers expenditure due to its cost. Thus, the income effect for a car would be the largest

The substitution effect is the change in demand as a result of change in the price of the good compared to the price of another substitute good.

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The rationing function of prices refers to the fact that government must distribute any surplus goods that may be left in a comp
natulia [17]

Answer: false

Explanation: The rationing function of price describes the way in which the use of price is done for rationing of several scarce resource. This is done automatically by the market forces of demand and supply as when the demand for a commodity exceeds its supply the price of the commodity rises leading to decrease in demand.

Thus, rationing function states to ration the goods and distribute them carefully and not to distribute the surplus amount.

4 0
3 years ago
Eurodollars are _________. A. dollar denominated deposits at any foreign bank or foreign branch of an American bank B. dollar de
Ipatiy [6.2K]

Answer:

A. dollar denominated deposits at any foreign bank or foreign branch of an American bank

Explanation:

  • Are dominations deposited in US dollars in banks that are outside the united states thus are not under the rule or jurisdiction or federal laws. The eurodollar rate is also known as the LIBOR rate is equal to the base rate adjusted by minimum reserve requirements.
  • The eurodollar market accounts for a higher rate of interest, greater the flexibility of the maturities and has a wider range of investment in the qualities.
  • It has roots in WW2 when the US gave funds from the marshall plan to rebuild the European continent.
4 0
3 years ago
True or false?
IRISSAK [1]

Answer:

The statement is: True.

Explanation:

A competitive advantage is an advantage an individual, organization or country has over its competitors. That competitive advantage can be a comparative advantage when the entity has found a way to implement lower opportunity costs in its production process or a differential advantage if the firm provides a product or service with a unique feature difficult to replicate by competitors.

8 0
3 years ago
In a recent year, sherwood day corporation had sales of $500,000, net income of $200,000, interest expense of $40,000, and tax e
Kipish [7]
The interest earned by the Sherwood Day Corporation is calculated by subtracting from the net income all the expenses including the interest expense and the tax expense. Mathematically,
                    interest earned = $200,000 - ($40,000 + $30,000)
                                                = $130,000
8 0
3 years ago
Suzanna decided not to pay federal income tax, saying that paying federal income tax is optional. Describe two possible conseque
Romashka [77]

Answer:

Not filing your return will cost you an additional 5 percent of your unpaid tax bill each month.

Not paying what you owe will add an extra 0.5 percent each month to your overall IRS debt.

If you did not file on time and did not pay any tax you owed, you are subject to both penalties. However, the IRS actually gives you a bit of a break. The maximum penalty that you’ll pay for both in any given month is 5 percent, rather than 5.5 percent.

If you don’t file or pay for five months, the failure-to-file penalty will max out at 25 percent of your unpaid taxes. But the 0.5 percent failure-to-pay penalty will continue to accrue, up to another 25 percent of what you owe, until the tax is paid.

Interest also is charged on the overdue amount

If your due a refund then the only way to get it is to file

Explanation:

7 0
3 years ago
Read 2 more answers
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