1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zmey [24]
3 years ago
13

Review Question 1 What is meant by deadweight​ loss? Why does a price ceiling usually result in a deadweight​ loss? Deadweig

ht loss is a​ _____________________. A price ceiling results in a deadweight loss when the ceiling price is set​ ________________ the market clearing price. A. net loss in​ output; above B. net loss of consumer and producer​ surplus; below C. net loss in​ output; below D. net loss of consumer and producer​ surplus; above Click to select your answer and then click Check Answer. All parts showing
Business
1 answer:
KiRa [710]3 years ago
8 0

Answer:

b

Explanation:

Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.

Effects of a binding price ceiling

1. It leads to shortages

2. it leads to the development of black markets

3. it prevents producers from raising price beyond a certain price

4. It lowers the price consumers pay for a product.  

The dead weight loss is the reduction in total surplus as a result of price setting. When price is set below equilibrium price, less goods are produced and consumed. This leads to a reduction in consumer and producer surplus

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product

You might be interested in
Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transaction
natita [175]

Answer:

FINISHING TOUCHES

Balance Sheet  December 31, 2015

(Stockholders’ Equity Section)

Stockholders’ equity:

Common stock  = $100,000

Preferred stock  =  $30,000

Treasury stock  = -$5,500

Additional paid-in capital  = $3,216,000

Total paid-in capital  = $3,340,500

Retained earnings  = $63,100

(Preferred stock  = -$,30,000)

Total stockholders’ equity = $3,373,600

Explanation:

a) 100,000 Common stock issued at $35 per share with $1 par is valued at $1 in the Common Stock section while the difference $34 $(35 - 1) is taken to the Additional paid-in capital at 100,000 x $34.

b) 3,000 Preferred Stock  issued at $11 per share with $10 par is valued at $10 in the Preferred Stock while the difference $1 $(11 - 10) is taken to the Additional paid-in capital at 3,000 x $1.

c) Treasury stock is the repurchase of stock by the company.  It is a contra account to the equity accounts.  It is therefore deducted from the equity section.  Two methods exist for its treatment: the cost method and the par value treatment.  We used the par value treatment.

This involves stating the par value movements in the Treasury stock while  the additional loss or additional gain is taken to the Additional Paid-in Capital section.

On the other hand, the cost method treats the cost of repurchase in the Treasury stock.

d) Additional Paid-in Capital (APIC) account records the above par value received.  It is also where the above par value is deducted for Treasury Stock.

e) Retained Earnings represent the net income after paying dividends to common stockholders and preferred stockholders.

f) To get the total stockholders' equity, the preferred stock is deducted.  Holders of preferred stock are not equity holders.

7 0
3 years ago
Held-to-Maturity Bond Investment On January 1, 2016, Weaver Company purchased as held-to-maturity debt securities $500,000 face
yulyashka [42]

Answer:

b. $461,820

Explanation:

The computation of the amount reported in the balance sheet is shown below:

But before that we need to find out the amortization of discount which is

= Purchased value of bond × interest rate of return - face value of bond × interest rate

= $456,200 × 10% - $500,000 × 8%

= $45,620 - $40,000

= $5,620

Now the amount reported is

= Purchased value + discount amortization

= $456,200 + $5,620

= $461,820

Hence, the option b is correct

8 0
3 years ago
Say that Alland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Georgeland can
Gre4nikov [31]

Answer:

a.Georgeland has an absolute but not a comparative advantage in producing clothing.

Explanation:

A country has a comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.

A person has an absolute advantage in production if it produces more quantities of the good when compared with other countries.

Georgeland produces more quantities of both food and clothes when compared to Alland, so it has absolute advantage in both activities .

The opportunity cost of georgeland in producing clothes = 36 / 18=2

The opportunity cost of georgeland producing food = 18 / 36 = 0.5

For Alland,

the opportunity cost of producing clothes = 32 / 16= 2

the opportunity cost of producing food = 16 / 32 = 0.5

Neither countries don't have a comparative advantage in the production of either clothes of food bedside they have the same opportunity costs in both activities.

I hope my answer helps you

7 0
3 years ago
Which of the following survey response methods is the most difficult for researchers to code for evaluation:
Tju [1.3M]

Answer:

No options are given, but the most commonly used survey response methods are:

  1. Multiple choice questions = generally easy to code
  2. Rating scale questions = also easy to code, since response scales have a finite number of choices, e.g. 2 true/false, 3 agree/disagree/undecided, 5 very bad/bad/fair/good/excellent
  3. Matrix questions. = are a little bit more complex since they involve several rating scale questions, but it is not something difficult either
  4. Dropdown questions. = similar to multiple choice questions
  5. Open-ended questions. = this are hard to code since each subject can respond different things, e.g. the thing that I like the most about this project is bla, bla, bla. There are no pre-set answers given to the subjects. THIS TYPE IS THE MOST DIFFICULT TO CODE.
  6. Demographic questions = similar to multiple choice
  7. Ranking questions = similar to scaled questions

3 0
3 years ago
g Enchancia Inc. reported the following information at its annual meeting: The company had cash worth $3,290,558, accurals of $5
olga55 [171]

Answer:

$5,354,741

Explanation:

assets:

cash $3,290,558

inventory $2,657,360

accounts receivable $577,102

fixed assets $4,019,047

total assets = $10,544,067

liabilities:

accruals $576,944

accounts payable $2,519,541

notes payable $610,904

long-term debt $1,481,937

total liabilities = $5,189,326

equity = assets - liabilities = $10,544,067 - $5,189,326 = $5,354,741

5 0
3 years ago
Other questions:
  • What is an example of a recreational goal??
    11·1 answer
  • Campbell Clothing produces men's ties. The following budgeted and actual amounts are for 2016:
    8·1 answer
  • An investment with more liquidity would be ideal for someone who
    15·2 answers
  • Select the correct answer.
    15·1 answer
  • ADRIAN CORP. SELLS GOODS ON ACCOUNT FOR $100000 ON MAY 1. ON MAY 15, THE CUSTOMER RETURNS $40000 OF THE MERCHANDISE. THE CUSTOME
    9·1 answer
  • Calculating Residual Income East Mullett Manufacturing earned operating income last year as shown in the following income statem
    13·1 answer
  • To the extent that a firm is able to standardize its products across country borders, use the same or similar production facilit
    9·1 answer
  • You get a $3,000 loan at 9% interest for 120 days. The lender uses a 365-day year. How
    9·1 answer
  • You are planning a graduation trip to mexico. Other things the same, if the dollar appreciates relative to the peso, then:.
    12·1 answer
  • lourdes corporation's 11% coupon rate, semiannual payment, $1,000 par value bonds, which mature in 15 years, are callable 4 year
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!