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
uysha [10]
3 years ago
11

The presence of a sales tax means that people pay a tax on most everyday things they buy, such as clothes and groceries. In the

United States, 45 states collect state sales tax, and 38 states collect local sales tax. In 2018, the highest combined state and local sales tax was 10.02%, in Louisiana. The sales tax amount varies by location, but everyone purchasing within an area pays the same percentage sales tax.
a. Sales tax:_________.
i. is relatively more expensive to the poor than to the rich.
ii. is a relatively small expense for both the rich and the poor.
iii. is relatively more expensive to the rich than to the poor.
iv. impacts poor and rich families in the same way because everyone pays the same percentage.
b. A sales tax is:_______.
i. regressive
ii. progressive
Business
1 answer:
elena-14-01-66 [18.8K]3 years ago
5 0

Answer:

i. is relatively more expensive to the poor than to the rich.

regressive

Explanation:

A sales tax is a tax on the consumption of goods and services levied by the government or an agency of the government.

There are three types of tax systems

1. Regressive tax system is a tax system where those that earn lower income pay more tax and those that earn higher income pay less tax.  

2. A proportionate tax taxes everyone the same regardless of the amount earned.  

3. A progressive tax is a tax structure where those who earn higher income are taxed more and those that earn less pay less amount of tax.  

A sales tax is regressive.

This can be illustrated with an example.

Person A earns $100,000 while person B earns $1000. They both purchased a good and the sales tax paid was $50.

The proportion of sales tax to income for person A = 50 / 100,000 = 0.05%

The proportion of sales tax to income for person B = 50 / 1000 = 5%

It can be seen that the sales tax  is relatively more expensive to the poor than to the rich. this is an example of a regressive tax

You might be interested in
We believe in creating loyal customers by providing a superior experience at a great value. We are committed to direct relations
Likurg_2 [28]

Answer:

b) mission statement

Explanation:

A mission statement is a formal description that captures all what a company is set out to do in achieving their vision. It is a brief summary of a company’s philosophy, goals and objectives.

A mission statement is what gives a clear direction to a business, as the purpose of a business is well clarified. A mission statement which answers the basic question of “Why does your business exist” helps in increasing employee engagement as well as ensuring the vision of the company is actualized.

The statement of Dell as highlighted in the question above is part of Dell’s mission statement, as it tells why the business exist.

3 0
3 years ago
The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $145 per share for months, and you believ
user100 [1]

<u>Solution and Explanation:</u>

a) Let us calculate the value of call using Put-Call Parity,

i.e. Put + Stock = Call + Present Value of Exercise Price (note that it is 6 - months time period)

\text { i.e. } 8.19+145=\mathrm{call}+145 / 1.09^{\wedge} 0.5

\text { i.e. } 8.19+145=\mathrm{call}+145 / 1.044

Therefore, Call = $ 14.31

b1) The option strategy best suited in the given condition is - Short or Sell Straddle.

In shorting a straddle, you simultaneously sell a call and a put, thereby earning premium in both the legs of the strategy. It is a neutral options strategy wherein profits can be made when stock price is expected to remain stagnant. However it is to be noted that the profits are limited to the option premium earned on call and put but the risk is unlimited. i.e. only when you are reasonably sure as to the stock price remaining more or less constant, go for short straddle.

b2) Assuming that we went for short straddle, we earn $ 8.19 premium on put and $ 14.31 premium on call i.e. we earn maximum of $ 22.50 on this stock due to our position in options.

b3) WITHOUT CONSIDERING TIME VALUE -

Now, CONSIDERING TIME VALUE - the stock price would need to swing in either direction by (22.50 * 1.09 \times 0.5)= $ 23.49 for us to start incurring losses.

c) Buy the call, sell the put and lend $ 138.8848

Let 'Price' in the table below denote the stock price at the end of 6 months.

If we take a long position in call, the immediate CF is $ 14.31 (premium outflow).

If we take a short position in put, the immediate CF is $ 8.19 (premium inflow)

Position       Immediate CF      CF in 6 months         CF in 6 months

                                                         (if price < X)        (if price > X)

Call (Long)   -14.31                          0                      Price - 145

Put (Short)       8.19                         - (145 - price)               0

Lending Position  145 / 1.09^{\wedge} 0.5=138.88  145                     145

Total                                           Price                    Price

NOTE- FIGURES ARE SUBJECT TO ROUNDING OFF.

3 0
3 years ago
What is the difference between a shortage and scarcity?
velikii [3]
<span>The difference between scarcity an shortage is that a scarcity is something that occurs naturally due to limitations on the resources that have no way to be replenished. A shortage comes from a condition in the market when a certain good is set at a certain price. So the correct answer is B.</span>
7 0
3 years ago
Read 2 more answers
The board of directors for tundrapro, inc., is searching for a new ceo. the firm is in need of new direction after suffering sev
larisa86 [58]
The board needs employees who have transformational qualities as well.
7 0
3 years ago
What role has venture capitalism played in the market place?
bekas [8.4K]

Answer:

The summary of the matter in question is mentioned throughout the subsection below.

Explanation:

  • Venture Capital seems to be an age-old term although in previous centuries this same industry has changed.
  • A venture capitalist plays a very important role throughout organizing early-stage investment, attracting top management abilities candidates, promising technological start-ups, and innovative product manufacturer's professional assistance as well as other support facilities.

6 0
3 years ago
Other questions:
  • Dipboye's model of interviewer decision making implies which of the following? a. The interviewer controls what information is p
    14·1 answer
  • Draw a supply curve of smartphones. Label it. Use any prices and quantities you wish but make your supply curve obey the law of
    15·2 answers
  • A company did a comprehensive examination of how pit crews in an auto race work to quickly get a racecar into the pit area, gas
    12·1 answer
  • Ms. Jessup teaches 7th grade. Her students do not pay tuition to attend her school. Which describes the type of school that Ms.
    12·2 answers
  • Suddeth Corporation has entered into a 6 year lease for a building it will use as a warehouse. The annual payment under the leas
    15·1 answer
  • Ay someone explain why $MARA &amp; $RIOT stock been doing real bad while BTC be going up up and up ​
    6·1 answer
  • Does skeppy have a job?
    6·2 answers
  • Bonnie is writing a growth plan for her bicycle repair shop. She wants to pay off the loan for the building she uses for her bus
    12·1 answer
  • Joshua is 25 years old and has a high risk job making $72,000 a year. The insurance company charges him an extra 20% on top of h
    8·1 answer
  • armon apparels designs, manufactures, and distributes athletic apparel and accessories for men and women. the company has only n
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!