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3 years ago

The government uses taxes and subsidies to guide consumption and production decisions.

Business

1 answer:

aleksandrvk [35]3 years ago

4 0

Answer: True

Explanation:

Tax is the amount of money that's paid by an individual or firm to the government. Subsidies are the funds or other forms of assistance that's given by the government to firms in order to help them increase their production and lower the prices of goods.

Fir example, if the government wants to decrease consumption in the economy, the government can increase tax. On the other hand, the government can increase consumption by reducing tax as people will have money to spend and also more money for production purpose.

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Suppose the countries of Iceland and Norway set up a free trade area, eliminating all trade barriers between themselves but main

geniusboy [140]

Answer:

Trade Bloc

Explanation:

Trade Bloc is a type of agreement between two sovereign nations in which barriers to trade are either reduced or totally eliminated between the two nations. This type of agreement can either be one agreement between several nations or a part of a regional organization.

So, the example of Iceland and Norway is an example of a trade bloc.

8 0

3 years ago

Wyatt is paying back a loan with a nominal interest rate of 13. 62%. If the interest is compounded quarterly, how much greater i

lbvjy [14]

Wyatt's effective interest rate would be greater than his nominal interest rate by 0. 71 percentage points.

The nominal interest rate is 13. 62% or 0.1362 that would be given an effective rate of interest as follows:

$R=(1+\frac{i}{m})^{m} -1\\=(1+\frac{0.1362}{4})^{4} -1\\=0.1433$

Here, the value of the effective rate of interest, that is 0.1433 that would be multiplied with 100 to get the percentage value of 14.33%

Hence, the difference between effective and nominal interest rates would be:

$14.33-13.62\\=0.71$

Learn more about the effective and nominal rates of interest here:

brainly.com/question/2787260

6 0

2 years ago

Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations

DochEvi [55]

Answer:

c) $ 24,200

Explanation:

Computation of Total Period costs

Fixed selling and Administrative expenses $ 8,800

Variable Selling and Administrative costs

$ 7 per unit * 2,200 units sold $ 15,400

Total period costs $ 24,200

The fixed manufacturing overhead is part of manufacturing costs so not considered.

The variable selling and administrative costs are based on units sold and not units produced.

5 0

3 years ago

Ned is a head of household with a dependent son, Todd, who is a full-time student. This year Ned made the following expenditures

UNO [17]

Answer: D. $600 included in Ned's medical expenses

Explanation:

The amount that Ned can include in his itemized deductions will be the $600 that's included in Ned's medical expenses.

It should be noted that the medical expenses will be under the itemized deductions. On the other hand, the other options will be under the miscellaneous itemized deductions. Therefore, the correct option is D.

5 0

3 years ago

The Woods Co. and the Speith Co. have both announced IPOs at $52 per share. One of these is undervalued by $11, and the other is

Sergio039 [100]

Answer:

$11,400

Explanation:

Data provided as per the question is below:-

Shares = 1,900

Undervalued amount = $11

Overvalued amount= $5

The computation of profit is shown below:-

Profit = Shares × Undervalue amount - Shares × Overvalued amount

= 1,900 × $11 - 1,900 × $5

= $20,900 - $9,500

= $11,400

Therefore for computing the profit we simply applied the above formula.

4 0

3 years ago