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1 year ago

In three to four sentences, explain how taxes influence consumer decisions and buying power.

2 answers:

8 0

Factors such as price and production costs help determine the market supply curve.
Most states impose sales tax on some goods and services as a means of generating revenue. However, sales taxes also influence consumer behavior. These influences, along with the basic financial impact of sales tax, are evident on supply and demand curves when sales tax rates increase or a state imposes a new sales tax.

Alja [10]1 year ago

6 0

Answer:

Income taxes reduce the amount of money that an employed individual brings home. This causes individuals to have less disposable income to spend. Additionally, when taxes are applied to goods that consumers purchase, they are spending more for individual items. This means that many consumers must weigh their opportunity costs and decide between items to purchase

Explanation:

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Duckistan Production Possibilities A B C D E Civilian Goods 20 18 14 8 0 Military Goods 0 1 2 3 4 Herbania Production Possibilit

olganol [36]

Answer:

B. Herbania is technologically superior to Duckistan in producing civilian goods.

Explanation:

Duckistan Production Possibilities

A B C D E

Civilian Goods 20 18 14 8 0

Military Goods 0 1 2 3 4

opportunity cost - ¹/₁₈ ¹/₇ ³/₈ 4 civilian goods

opportunity cost 20 18 7 2.7 - military goods

Herbania Production Possibilities

A B C D E

Civilian Goods 40 36 26 14 0

Military Goods 0 1 2 3 4

opportunity cost - ¹/₃₆ ¹/₁₃ ³/₁₄ 4 civilian goods

opportunity cost 40 36 13 4.7 - military goods

Herbania has an absolute advantage in the production of civilian goods. Since it also has a lower opportunity cost of producing civilian goods, therefore, it also has a comparative advantage at producing civilian goods. Assuming that resources are equal in both countries, then we can assume that Herbania is technologically superior in the production of civilian goods.

Dukistan has a lower opportunity cost of producing military goods, therefore, it has a comparative advantage at producing military goods.

3 0

1 year ago

Photo Framing's cost formula for its supplies cost is $1,080 per month plus $18 per frame. For the month of November, the compan

Effectus [21]

Answer:

$526 was the spending variance in November

Explanation:

The spending variance in the month involves knowing the difference between actual supplies cost incurred in the month and the budgeted supplies cost based on actual activity

Budgeted supplies cost based on actual activity of 608 frames=$1080+(608*$18)

Budgeted supplies cost based on actual activity of 608 frames=$1080+$10,944=$12,024

Spending variance=$12,550-$12.024 =$526

The actual spend was $526 more than the budgeted spend based on actual activity,hence an unfavorable variance was recorded

6 0

1 year ago

A company has the opportunity to take over a redevelopment project in an industrial area of a city. No immediate investment is r

Ganezh [65]

Answer:

1-a. The are multiple IRRs stated as follows:

The first IRR value = 4.09%

Second IRR value = 31.82%

1-b. Rate of return = 7.58%

2. This is NOT a good investment because the NPV is negative.

Explanation:

Note: The estimated Net Cash Flow for the 4th year in the data is erroneously stated in the question as a positive value instead as a negative value since it is a cost.

The estimated net cash flows correctly before answering the question as follows:

Year End Net Cash Flow

1 $500,000

2 $300,000

3 $100,000

4 –$2,400,000

5 $150,000

6 $200,000

7 $250,000

8 $300,000

9 $350,000

10 $400,000

The explanation of the answers is now given as follows:

1-a. Tabulate the PW versus the interest rate and determine whether multiple IRRs exist.

Note: See Part 1-a of the attached excel file for the tabulation of the PW versus the interest rate.

From Part 1-a of the attached excel file, it can be observed that multiple IRRs exist. This is because there two IRRs stated as follows:

The first IRR value = 4.09%

Second IRR value = 31.82%

1-b. If so, use the ERR method when e 8% per year to determine a rate of return.

Note: See Part 1-a of the attached excel file for the calculation of total future value of income when e = 8% per year.

In the attached excel file, note that year 4 has a cost not income. Therefore,

From attached excel, we have:

Total Future Value of Income = $3,661,508.81

In the attached excel file, note that year 4 has a cost (not income) of $2,400,000. Therefore, it future value is not calculated. However, the present of the cost can be calculated as follows:

Present value of cost in year 4 = $2,400,000 / (100% + e)^4 = $2,400,000 / (100% + 8%)^4 = $1,764,071.65

The rate of return can now be calculated as follows:

Rate of return = ((Total Future Value of Income / Present value of cost in year 4)^(1/Number of period)) - 1 = (($3,661,508.81 / $1,764,071.65)^(1/10)) - 1 = 0.0758, or 7.58%

2. Use the PW method and a MARR of 18% to determine whether this is a good investment.

Note: See Part 2 of the attached excel file for the calculation of net present value (NPV).

From part 2 of the attached excel file, we have:

Net present value = –$21,043.15

Since the net present value is negative, this implies that this is NOT a good investment.

Download xlsx

5 0

1 year ago

As the television industry has changed in the last few decades from just three major networks to a multiplicity of networks, one

Ket [755]

Answer:

The answer is narrower competitive scope.

Explanation:

In a narrow competitive scope, a business might choose a focus strategy which can be oriented to cost leadership or differentiation. When implementing a focus strategy, the company chooses to only produce goods or provide services to a certain segment of people. In a cost leadership strategy, the business might choose to engage on initiatives that would lead it to be identified from its ability to provide the lowest possible price for its target segment. When choosing a differentiation strategy instead, the company’s competitive advantage would be its ability to provide a wide range of products.

4 0

2 years ago

Now that he is employed, martin wants to start making plans to purchase a new home. martin's plan to save up for a down payment

Effectus [21]

Answer: Medium-term goals

Personal finance goals can be classified as follows, based on time.

Short term goals : refers to the amount of money one needs to earn and save in order to meet the financial needs within the next one year.
Medium term goals : refer to the amount of money a person will need anywhere between one and five years from now. This might include a down payment for a car, a down payment for a house, planning for a long vacation etc.
Long-term goals: are aimed to cater to financial requirements in the distant future (greater than five years). This may include retirement planning, university fees for children etc.

4 0

1 year ago