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2 years ago

Which of the following scenarios is consistent with the Laffer curve?

Business

1 answer:

sergejj [24]2 years ago

3 0

Answer:

No option is correct.

a. An increase in the tax rate always increases tax revenue. ⇒ FALSE, if tax rates increase beyond the optimal level, instead of increasing total revenue they will decrease it.
b. The tax rate is 1 percent, and tax revenue is very high. ⇒ FALSE, very low tax rates will result in very low government revenue.
c. The tax rate is 99 percent, and tax revenue is very high. ⇒ FALSE, very high tax rates will result in very low government revenue.
d. A decrease in the tax rate always increases tax revenue. ⇒ FALSE, if tax rates decrease beyond the optimal level, instead of increasing total revenue they will decrease it.

Explanation:

According to Arthur Laffer, a direct and sometimes inverse relationship exists between tax rates and government revenue. Sometimes a lower tax rate can result in higher government revenue. But that is not always the case. Sometimes an increase in the tax rate can increase government revenue. The optimal tax rate (T*) is equal to the tax rate that will allow the government to collect the highest amount of revenue. Any lower or higher tax rate will decrease government revenue.

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A registered investment company whose share price fluctuates independently of its net asset value is most likely

bazaltina [42]

Answer:

Closed-End Fund

Explanation:

Close-End Funds raise money through an IPO and then its stocks are traded on secondary markets. There are no new issuance of stocks, nor there are repurchases of stocks, therefore, the price of their stocks is determined by the market. That is why their stock price will be based on its net asset value, but it fluctuates and is not dependent on it.

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2 years ago

Signal Sets Company contracts to deliver one hundred 52-inch plasma high-definition television sets to a new retail customer, T

ehidna [41]

Answer:

The answer is: Signal will not succeed on their claims.

Explanation:

In order for acceptance of a product to be valid, the buyer must accept the products after inspection and give formal acceptance, or fail to reject the products after a reasonable time for inspection. Only after the products are accepted does the buyer lose any rights to revoke acceptance.

In this case, Turner accepted the TVs based on Signal's promise that they were in perfect condition, but after inspection, Turner can revoke that acceptance do to damages on the products.

Both companies agreed that the payment should be done upon delivery, but there was no specific payment method. Turner tried to pay with a check that Signal rejected. Signal cannot demand a cash payment because a check is a valid payment.

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1 year ago

The first step in finding a job is locating job leads. Please select the best answer from the choices provided T F

Dominik [7]

true the first step is locating job leads

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1 year ago

Read 2 more answers

The hawthorne studies revealed that employees who are happy and satisfied with their work will perform better. out of this study

QveST [7]

The answer that best fits the blank above is HUMAN RELATIONS. The Hawthorne studies, as referred above, were done by Elton Mayo and Fritz Roethlisberger and the studies aim in <span>socio-psychological aspects of human behavior in the workplace or at any organization. As suggested above, human relations is created due to these studies.</span>

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1 year ago

Wages paid to inspectors, factory accountants, and plant supervisors are classified as __________ __________, while wages paid t

Mademuasel [1]

Answer:

Indirect Labour Cost, Direct Labour Cost

Explanation:

Direct Labour Cost

This is the type of cost incurred or wages paid to workers or employees that directly works on project. For example, laborer, foreman, painters, machine operators, delivery man etc. all belongs to this category. They are wages paid to the category of employees or workers who physically produce products.

Indirect Labour Cost

These are wages paid to those group of workers or employees that perform tasks that do not directly contribute to the production of goods or performance of services. For example, we have accountants, security guards, administrative officers, supervisors, inspectors and so on. It is also known as Overhead cost. They are not involved in the active part of conversion of raw materials into products.

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1 year ago