Answer:
A. Deadweight loss = 125 units.
B. Deadweight loss = 25 units.
Explanation:
In a free market and completely efficient economy, the consumer surplus equals the producer surplus. Both benefits of free trade. When consumers o producers have a minor surplus, necessarily implies a loss on eficiency, usually caused by government regulations like taxes or price ceilings.
The amount of welfare lost is measure by the difference between consumer and producer surplus.
In the first case:
|Consumer surplus - producer surplus| = 25 units
|250- 125| = 125 units
And in the second case:
|180- 155| = 25 units
Answer:
A corporation:
C. Is subject to federal income taxes on its earnings, whereas a partnership is not.
Explanation:
The other options fit a partnership more than a corporation. The chief advantages of a corporation over a partnership are the limited liability status of the shareholders of a corporation, which benefits all the shareholders and secondly, the corporation is a separate legal entity from the owners. This second advantage allows professional managers to lead the company. With respect to federal income taxes on the earnings, the corporation is taxed directly on its earnings and shareholders also pay taxes on their income from all sources (unless it is an S-corporation), while partners in a partnership enjoy pass-through taxation of their partnership earnings.
Answer:
Predetermined manufacturing overhead rate= $2.15 per direct labor hour
Explanation:
Giving the following information:
It takes 80,900 direct labor hours to manufacture the X-1 and 93,500 direct labor hours to manufacture the X-2 Line.
Total overhead= 225,000 + 149,960= $374,960
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 374,960 / (80,900 + 93,500)
Predetermined manufacturing overhead rate= $2.15 per direct labor hour
Answer:
B) General Fund and Library Fund
Explanation:
Major funds are those that include revenues, assets, expenditures and liabilities that account for at least 10% of all the government funds.
In this case the total government funds = $26,300,000
so 10% of total funds = $26,300,000 x 10% = $2,630,000
only the general fund ($18,400,000 ≥ $2,630,000) and the library fund (2,900,000 ≥ $2,630,000) are higher than the 10% threshold.
Tariff C
Taxes took the test before
