From the coefficient estimate of β2, holding x1 constant, when x2 increases by 1 unit, y___________ by ____________ %, which is only an approximation that becomes more inaccurate as the change in log(y) increases. However, when x2 increases by one unit, yˆ____________ by exactly _____________%. When x2 decreases by one unit, yˆ _____________ by exactly ___________________%. Which of the following are potential benefits of measuring the units of the dependent variable y in log form?
a. Logged dependent variables provide better estimates for values of the dependent variable that are less than 1.
b. When y>0, models using log(y) often satisfy the classic linear model (CLM) assumptions more closely than models using y do.
c. Logged variables can make OLS estimates less sensitive to outliers.
d. Using the logged form of the dependent variable reduces issues associated with heteroskedasticity
Answers
The correct option is a.
Potential benefits of measuring the units of the dependent variable y in log form are as follows:
a. Logged dependent variables provide better estimates for values of the dependent variable that are less than 1. This is because the logarithmic transformation compresses the values close to zero, making them easier to model.
b. When y>0, models using log(y) often satisfy the classic linear model (CLM) assumptions more closely than models using y do. This is because the logarithmic transformation stabilizes the variance of the errors, making the assumption of constant variance more likely to hold.
c. Logged variables can make OLS estimates less sensitive to outliers. This is because the logarithmic transformation reduces the impact of extreme values on estimating the regression coefficients.
d. Using the logged form of the dependent variable reduces issues associated with heteroskedasticity. This is because the logarithmic transformation can help to reduce the dependence of the variance of the errors on the level of the dependent variable, making the assumption of constant variance more likely to hold.
From the coefficient estimate of β2, holding x1 constant, when x2 increases by 1 unit, y changes by β2 multiplied by 100%, which is only an approximation that becomes more inaccurate as the change in log(y) increases. However, when x2 increases by one unit, yˆ changes by exactly β2 multiplied by 100%. When x2 decreases by one unit, yˆ changes by exactly -β2 multiplied by 100%.
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Related Questions
A company budgeted $148,000 sales on account for June, $120,000 for July, $211,000 for August, $198,000 for September, and $164,000 for October. Collection experience indicates that 60% of the budgeted sales will be collected the month after the sale, 36% will be collected the second month, and 4% will be uncollectible. Which month should have the largest amount of cash receipts from accounts receivable budgeted
Answers
Answer:
October
Explanation:
The computation of the month in which the largest amount of cash receipts is there
So, for that the calculation is to be needed
= $211,000 × 36% + $198,000 × 60%
= $75,960 + $118,800
= $194,760
For this month, the cash receipts from the account receivable is high
So the same should be considered
Rashad doesn't want to spend time organizing his personal financial records. His spouse, Minos, thinks it is worth spending the time to get organized. What should Minos tell Rashad to convince him that organizing personal financial records is beneficial? OA It will be easier to manage daily business activities such as paying bills. OB. People who organize their personal financial records generally do not have to file taxes. OC They cannot lose money on investments as long as they keep good records. OD. Most banks offer a yearly cash bonus if clients have organized financial records.
Answers
What Minos should tell Rashad to convince him that organizing personal financial records is beneficial is: A It will be easier to manage daily business activities such as paying bills.
To convince her spouse of the importance of organizing personal financial records, Minos should tell Rashad that organization will help him to coordinate his daily business activities better.
He will not be at a loss of the whereabouts of his financial data.
Therefore, option A is right.
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You are creating a budget for your new business. What should you include?
A. All income and expenses.
B. Fixed expenses but not income.
C. Income but not variable expenses.
D. Fixed and variable expenses but not taxes.
Answers
Answer:
A
Explanation:
You should include all income and expenses because you need to know the value of the business and the amount of money you'll have to spend after you have deducted all the expenses and added all the incomes of the business.
Out of a list of the values 12, 7, 3, 5, 8, and 2, which result would the MIN function return?
Answers
Answer:
2
Explanation:
It’s just right, trust
If you do not have a constant supply of new information to post on a business blog:____.
Answers
If you do not have a constant supply of new information to post on a business blog, there are a few things you can do to keep your blog active and engaging for your readers:
1. Repurpose existing content: Look through your archives and identify older posts that are still relevant and valuable. Update them with new information, add visuals or examples, and republish them on your blog.
2. Curate content: Find high-quality articles, blog posts, or videos from other sources that are relevant to your audience and share them on your blog. Make sure to provide your own commentary or insights to add value to the curated content.
3. Feature guest posts: Reach out to industry experts, influencers, or other professionals in your niche and invite them to contribute guest posts on your blog. This not only brings fresh content but also helps you tap into their network and potentially attract new readers.
4. Answer frequently asked questions: Identify common questions or pain points that your target audience has and create blog posts addressing them. This allows you to provide valuable information and establish yourself as an authority in your field.
5. Conduct interviews: Reach out to experts or thought leaders in your industry and conduct interviews with them. This not only provides fresh content but also adds credibility to your blog and allows you to tap into their expertise and network.
Remember, it's important to maintain consistency in posting, even if it's not daily or weekly. Set a schedule that works for you and stick to it to keep your readers engaged.
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Drag the tiles to the correct boxes to complete the pairs.
Match the cost or benefit with the appropriate spending decision.
Answers
Answer:
can result in crushing interest expenses, obtaining a loan for a major purchase
can help in any emergency using your savings account money
does not require planning, making impulse purchases
establish good credit using credit card
Answer:
tile: Making impulse purchases = pairs: does not require planning
tile: Using credit cards = pairs: can result in crushing interest expenses
tile: Obtaining a loan for a major purchase = pairs: establishes good credit (if the payments are made on time every month until paid off)
tile: Using your savings account money = pairs: can help in an emergency
Explanation:
1st tile: by definition an impulse purchase is made quickly, without any planning.
2nd tile: if credit cards are used without paying off balances every month can lead someone to accruing large amounts of interest charges and can lead to financial ruin.
3rd tile: Typically when making large ticket purchases like homes or cars can build a great credit history because it gives you credit history and payment timeliness history.
4th tile: Typically when emergencies happen, there is no time for payments or financial planning. Savings funds can help during unplanned or emergency financial situations such as unplanned car repairs or car accidents.
Choose a popular franchise, and visit the company's Web site to learn about its franchising policies. List at least three things you learned, such as costs franchisees must pay, or other rules or requirements. (1-3 sentences. 3.0 points) TIP: Popular franchises include McDonalds®, SUBWAY®, Dunkin' Donuts®, Cold Stone Creamery®, 7-Eleven®, Days Inn®, Great Clips®, Molly Maid®, and many more.
Answers
The popular franchise I chose was Wendy's, a nationwide fast-food restaurant that specializes in hamburgers.
I visited the company's website to learn about its franchising policies, and this is what I learned:
Wendy's costs of franchisees are approximate $5 million.The corporation asks the investor to have that sum of money and about $2 million in assets.I also learned that the sum of money that a business franchise of Wendy's can produce $1.5 million in annual sales.To show real interest in acquiring a franchise, the investor has to pay Wendy's a franchise fee of $40,000. There is also a concept called "application fee" that is approximately $5000. This first payment is needed to start conversations formally.There is also a 4% royalty fee that must be paid on a monthly basis.
We conclude that a Business Franchise is the business modality in which the owner of a Franchise sells its concept of operation to an investor.
In the case of Wendy's, the corporation authorizes the use of its trademarks, logos, and slogans and all the "know-how to operate the franchise.
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Answer:
listen to wise one above.
Explanation:
Fractional reserve banking increases the money supply in an economy by:
A. preventing depositors from leaving a lot of money in banks.
B. requiring the government to print more money in certain
situations.
C. loaning money that would otherwise be held in a bank.
D. accepting currencies from many different countries to pay off
loans.
Answers
Answer:
C. loaning money that would otherwise be held in a bank.
Explanation:
Fractional reserve banking increases the money supply in an economy by "loaning money that would otherwise be held in a bank."
Fractional reserve banking is known as a system of banking whereby the banks hold a fraction of what customers deposit as reserves. Then the banks use the remaining to give loans and thereby creating and increasing the supply of money. Commercial banks practise this type of banking system. This tells of how commercial banks are affecting the money supply. The bank reserves are usually held as cash in the bank. It can also as balances in the bank's account at their central bank.
Answer:
C. loaning money
Explanation:
just did it on a-p-e-x
an excess of saving over investment in a nation is necessarily reflected in
Answers
An excess of saving over investment in a nation is necessarily reflected in an equal amount of capital outflow from that nation.
When a nation saves more than it invests, it creates a surplus of funds that can be used to invest in other countries. This surplus of funds leads to capital outflows from the country, which can take various forms, such as direct foreign investment, purchases of foreign assets, or loans to foreign entities. Capital outflows can have both positive and negative impacts on the domestic economy, depending on the reasons for the surplus and the nature of the outflows.
Therefore, capital outflow is the most suitable answer.
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the main reason that some nations have higher average living standards than others is that a. some nations have stronger laws protecting worker rights. b. the central banks of some nations have created more money. c. the richer nations have exploited the poorer ones. d. some nations have higher levels of productivity.
Answers
The main reason that some nations have higher average living standards than others is that some nations have higher levels of productivity (option d)
Labor productivity is the amount of products and services produced by the average worker in one hour of work. The single most important determinant of a country's quality of living is its level of productivity, with higher productivity growth leading to an ever better standard of living.
Living standards can be evaluated in a variety of ways, but the average annual growth of the typical household is a reliable indicator for gauging national living standards.
The relationship between productivity and standard of living is that productivity raises real salaries and income, raising people's standard of life.
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How many trade schools are there for Avionics Technicians?
Answers
Answer:
Hi...
Explanation:
ECONOMICS
Determine whether each characteristic describes a sole proprietorship, a general partnership, or a corporation. Note that a characteristic may apply to more than one type of business structure.(2 points)
Answers
The characteristic that describes a sole proprietorship makes a corporation sole proprietor. Option B. This is further explained below.
What is a sole proprietorship?Generally, a sole proprietorship is simply defined as a kind of unincorporated firm in which the earnings are reported and taxed by the owner as a part of his or her personal income.
In conclusion, Individuals who hold single proprietorships are responsible for all financial obligations of the company.
When two or more individuals work together to run a company, they are said to be "in partnership."
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Answer: Stocks may be issued to generate income- Corporation
There are 1 or more owners-Sole Proprietorship, General Partnership, Corporation
Liability is unlimited or can be unlimited-Sole Proprietorship, General Partnership.
Mountain High Ice Cream Company reports under IFRS. Mountain High transferred $60,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates have a fair value of $5,000). Mountain High anticipates a $3,000 recourse obligation. The bank charges a 2% fee (2% of $60,000) and requires that amount to be paid at the start of the factoring arrangement. Mountain High has transferred control over the receivables but determines that it still retains substantially all risks and rewards associated with them.
Required:
Prepare the journal entry to record the transfer on the books of Mountain High, considering whether the sale criteria under IFRS have been met.
Answers
Based on the given scenario, Mountain High Ice Cream Company has transferred $60,000 of accounts receivable to the Prudential Bank with recourse. As per the transfer agreement, the bank will remit 90% of the factored amount to Mountain High and retain 10% to cover sales returns and allowances. However, the bank will remit the retained amount (estimated to be $5,000) to Mountain High when the receivables are collected. Mountain High also anticipates a recourse obligation of $3,000.
To record this transaction in the books of Mountain High, the following journal entry should be made:
Cash $58,800
Due from Prudential Bank $5,000
Recourse Liability $3,000
Accounts Receivable $60,000
Factoring Fee Expense $1,200
The factoring fee expense is calculated as 2% of $60,000, which is the fee charged by the bank at the start of the factoring arrangement. As per IFRS, for a transfer of control to occur, the transferor must surrender control over the transferred asset, and the transferee must have the ability to sell or pledge the asset. In this case, Mountain High has transferred control over the receivables, but it still retains substantially all risks and rewards associated with them. Hence, the sale criteria under IFRS have not been met.
Hi, I'm happy to help you with your question. In this scenario, Mountain High Ice Cream Company is transferring $60,000 of accounts receivable to Prudential Bank with recourse. However, they still retain substantially all risks and rewards associated with the receivables. Under IFRS, the sale criteria have not been met, so the transfer will be treated as a secured borrowing.
To record the transfer on Mountain High's books, we need to make the following journal entry:
1. Debit Cash for $54,000 (90% of $60,000)
2. Debit Factoring Fee Expense for $1,200 (2% of $60,000)
3. Debit Due from Factor for $5,000 (retained amount's fair value)
4. Credit Accounts Receivable for $60,000 (total transferred receivables)
5. Credit Liability for Recourse Obligation for $3,000 (anticipated recourse obligation)
Here is the journal entry in the standard format:
1. Cash $54,000
2. Factoring Fee Expense $1,200
3. Due from Factor $5,000
Accounts Receivable $60,000
Liability for Recourse Obligation $3,000
This journal entry reflects the cash received, factoring fee expense, and due from factor, while also acknowledging the recourse obligation and reduction of accounts receivable.
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a company will debit ___________ when recording a credit sale.
Answers
A company will debit accounts receivable when recording a credit trade.
The balance of plutocrat owed to a business for goods or services delivered or utilized but not yet paid for by guests is known as accounts delinquent( AR). On the balance distance, accounts receivable are shown as a current asset. Any sum of plutocrat that guests owe for purchases they made using credit is known as AR.
The term" accounts receivable" describes the overdue bills or cash that guests owe a business. The term describes accounts that a company is entitled to get since it has handed a good or service.
Receivables, also known as accounts delinquent, are a company's line of credit that generally include terms that call for payments to be made within a kindly short time frame. Generally, it begins with a many days.
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FILL IN THE BLANK. Electrical forces ____.
(static electricity)
a. can cause objects to only attract each other
b. can cause objects to only repel each other
c. can cause objects to attract or repel each other
d. have no effect on objects
Answers
Electrical forces can cause objects to attract or repel each other.
Option C is correct.
Electrical forces are one of the fundamental forces of nature that govern the behavior of electrically charged particles, such as protons and electrons. These forces arise due to the interaction between the electrically charged particles and are responsible for the attraction or repulsion of particles.
The strength of the electrical force is determined by the magnitude of the charge on the particles and the distance between them. Like charges (i.e., positive-positive or negative-negative) repel each other, while opposite charges (i.e., positive-negative) attract each other. The magnitude of the force decreases as the distance between the particles increases.
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Suppose that the calculated value of r between cognitive ability and job performance is 0.73. How much variation in job performance is explained by the variation in cognitive ability?
Answers
Answer:
53.28%
Explanation:
The correlation coefficient (r) between cognitive ability and job performance is provided as 0.73. Therefore, the coefficient of determination is calculated as follows:
Coefficient of determination = r² = 0.73² = 0.5329
Therefore, 53.28% can be concluded to be the variation in job performance as explained by the cognitive ability.
Why is choosing an appropriate mortgage potentially even more important than choosing an appropriate auto loan?
Answers
The statement was the explain are appropriate mortgage potentially is the Annual Percentage Rate (APR) are the important to the appropriate auto loan is the monthly, and the short terms fees.
What is mortgage?A mortgage is an arrangement that grants the right to seize property between a borrower and a lender. Interest is added to any borrowed money that is not repaid by the borrower. There are various types of mortgage are adjustable-rate mortgages, government-insured mortgages, conventional mortgages, and jumbo mortgages.
Annual Percentage Rates (APR) are potentially used in a suitable mortgage is the interest rate and the loan period it was not the monetary compensation. Because of the low rate, the additional fees will have little effect on the overall cost of the car. A suitable vehicle loan is determined by the loan balance, fees and charges, and the concluding remarks.
As a result, the appropriate mortgage potentially is the Annual Percentage Rate (APR) are the long term to the appropriate auto loan is the monthly, and the short terms fees.
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Opportunity cost is best described by which of the following statements?
Choose 1 answer:
Choose 1 answer:
(Choice A)
The value of the next best option given up when making a decision
(Choice B)
The tradeoffs faced when choosing how to use a scarce resource
(Choice C)
The price to a consumer of a good or service
(Choice D)
The cost a buyer sees for something they want
(Choice E, Checked)
The monetary cost of any economic transaction
Answers
Answer:
The value of the next best option given up when making a decision.
Explanation: In Opportunity cost means what we give up to get it.
The worth of the next best choice foregone during decision-making. As a result, choice (A) is the right reaction.
What is opportunity cost?The value or gain that is given up in return for engaging in a certain activity as opposed to engaging in a different activity is known as the opportunity cost in microeconomic theory.
To put it another way, it means that by deciding on one path of action (like making an investment), you are giving up the opportunity to choose an other course of action. The best activity is regarded as the one that produces the maximum return among all others, after deducting opportunity costs.
The objective of opportunity cost, which illustrates the relationship between scarcity and choice, is to ensure efficient use of scarce resources. It accounts for all direct and indirect costs associated with decisions.
Hence, option (A) is accurate.
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What is a business opportunity?
Answers
Answer:
a packaged business investment that allows the buyer to begin a business.
Explanation:
michael s. finke, wen s. chern, and jonathan j. fox, do the urban poor pay more for food? issues in measurement, 9 advancing the consumer interest 13-17 (spring 1997)
Answers
The article by Michael S. Finke, Wen S. Chern, and Jonathan J. Fox titled "Do the Urban Poor Pay More for Food? Issues in Measurement" investigates whether or not metropolitan unfortunate people face higher food costs contrasted with different sections of the populace.
It focuses on the challenges associated with measuring and assessing the extent of food price disparities experienced by low-income individuals. The authors highlight the importance of considering various factors such as location, shopping behavior, and product quality when examining food costs.
The article contributes to the discussion on equity and access to affordable food for vulnerable populations, shedding light on the complexities surrounding food pricing and its implications for the urban poor.
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This question is not complete, Here I am attaching the complete question:
Explain this article "michael s. finke, wen s. chern, and jonathan j. fox, do the urban poor pay more for food? issues in measurement, 9 advancing the consumer interest 13-17 (spring 1997)."
Electric power production and distribution is an industry that is dominated by natural monopolies. Companies are given a monopoly to operate in an area by local, county, or state government, and in return, they have a legal obligation to provide electricity on demand to all customers in a geographic area. As a result, state and federal agencies extensively regulate utility companies to ensure customers and businesses are treated fairly. At the state level, an elected or appointed commission sets the rate of use for consumers, based upon the request of the providers. By law, these rates must allow the utility company to recover its cost of service, as well as to make a profit on their investment. Which form of government regulation does this passage primarily describe? taking over a company to operate it placing price limitations on a producer requiring public ownership of an industry insisting on approval over decision making.
Answers
Answer:
placing price limitations on a producer
Explanation:
"these rates must allow the utility company to recover its cost of service"
A standard electricity supplier is the main integrated owner of production, transmission, and distribution. These are included under natural monopolies.
What are natural monopolies?One top line reduces both the high cost and the loss of electricity inputs per unit of carrying capacity, transmission and distribution are the only natural monopolies.
The freshly generated energy is transmitted at high voltage and distributed to residential and commercial users at low voltage. Two aspects of electrical power make resources different from many other industries.
First, both high voltage transmission and low-voltage distribution are most economically done in a single line or single line network.
Second, because electricity cannot be stored cheaply, it should be produced as soon as it is needed. Failure to adjust production to demand may result in blurring or darkening of a large area.
In view of these factors, a typical electricity supplier as a natural monopolist is the main integrated owner of production, transmission and distribution.
It holds the administrative mandate given to the government as a legal compensation as a public service to serve all customers in the area.
It (or a few resources) is responsible for the operation of the control area, where it must maintain integrity and deliver economic productivity.
Thus, a typical electricity supplier as a natural monopolist is the main integrated owner of production, transmission, and distribution.
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Select the correct answer.
George, the market analyst of his company, will be calculating the company's sales forecast for the next month (May). He has decided to use the moving averages method of sales forecasting to complete his task. The sales for the last four months are $30,000 (April). $35,000 (March), $25,000 (February), and $30,000 (January). If George uses the formula to calculate moving averages, what sales forecast figure will he arrive at?
a.25000
b.30000
c.20000
d.35000
Answers
Answer:
b.30000
Explanation:
The moving average follows the trend of data to forecast the next value.
the formula applicable in moving average is = (n1 + n2 + n3 + ...) / n
For George, the moving average will be
=$30,000 + $35,000 +$25,000 + $30,000/4
=$120,000/4
=$30,000
3. Someday, Liam would like to be a master electrician. In order to achieve his goal, what would be a good job for Liam to take along
his career pathway?
apprentice to a residential electrician
internship at an architecture firm
junior mechanic for a machine rental agency
All changes saved
receptionist for a site project manager
Answers
A good job for Liam along his career pathway to becoming a master electrician would be an apprentice to a residential electrician (A). An apprenticeship would provide Liam with hands-on training and experience working with an experienced electrician, which would be valuable in helping him to develop the skills and knowledge necessary to become a master electrician.
Answer:
a
Explanation:
i just took this test
After graduation from high school in June, you and three classmates plan to travel around the United States. The plan is to visit the capital cities of all 48 contiguous states, taking numerous pictures along the way. The Sunnyside Camera Shop offers to give you a dozen rolls of 36-exposure color film for the trip free if you agree to let it develop and print all the rolls you use, for a stated price per roll. You agree. Are both you and the Sunnyside Camera Shop legally bound? What is the consideration for each party?
Answers
Answer:
Yes, both you and the Sunnyside Camera Shop are legally bound. The consideration for you is the free rolls of 36-exposure color film, and the consideration for the Sunnyside Camera Shop is the agreement to develop and print all the rolls you use for a stated price per roll.
how evade taxes pls tell me how to evade taxes i am only nine years old and need not pay taxes cause i hate taxes, taxes are for nerds
Answers
Answer:
you simply cease to do your legal documentation
Explanation
you dont have taxes until u have a job
Identify the examples of backgrounds. Check all that apply.
Sabir was raised in a Muslim family.
Michael wants to earn a college degree.
Irene is planning to become a Carpenter.
Jean has parents who have strong political views.
George wants to learn how to style hair.
Bao grew up participating in Chinese cultural activities.
Answers
Answer: The answers are: Sabir was raised in a Muslim family, Jean has parents who have strong political views, and Bao grew up participating in Chinese cultural activities.
Hope this helps :)
How does (i) supply elasticity and (ii) demand elasticity impact taxation decisions. In both cases, give an example of a specific good and use those examples to answer this question with diagrams
PLEASE ANSWER WITH YOUR OWN EXAMPLE AND IN YOUR OWN WORDS! I AM REALLY APPRECIATING IT, I WILL DEFINETLY GIVE YOU 5 STARS FOR IT
Answers
Supply elasticity refers to the responsiveness of the amount of supply of a specific good to a change in the price of that good. On the other hand, demand elasticity refers to the responsiveness of the amount of demand of a specific good to a change in the price of that good.
Both supply elasticity and demand elasticity impact taxation decisions. Taxation decisions are influenced by the elasticity of demand and supply. When demand for a good is more elastic, taxes levied on the good will affect the quantity of the good consumed more than when demand is inelastic.
Example of the impact of supply elasticity on taxation decisions: Suppose the price of sugar decreases due to a bumper crop. Since the supply of sugar is more elastic, the decrease in price will cause a proportionally larger increase in the amount supplied, which means that there will be a proportionally larger increase in the amount of sugar available for consumers to purchase. Thus, the effect of the tax on sugar will be lower.
Example of the impact of demand elasticity on taxation decisions: Suppose that the government increases the tax on cigarettes.
Since the demand for cigarettes is inelastic, smokers will continue to purchase cigarettes despite the increased price. Thus, the effect of the tax on cigarettes will be higher. If the demand for cigarettes is more elastic, a higher tax on cigarettes will cause a proportionally larger decrease in the quantity demanded.
The diagram below shows the relationship between tax revenue and the elasticity of demand and supply. As the demand becomes more elastic (flatter curve) or supply becomes more elastic (steeper curve), the tax revenue decreases. On the other hand, as demand becomes more inelastic (steeper curve) or supply becomes more inelastic (flatter curve), the tax revenue increases.
\(\large\text{Tax Revenue = Tax per unit * Quantity sold}\)Therefore, the government can use the concepts of supply elasticity and demand elasticity to make decisions on how much tax to place on certain goods.
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Consumption expenditures do not include household purchases of.
Answers
Answer:
sToP bUyInG wHaTeVeR yOuR bUyInG tHeN sWeEtHeArT
Explanation:
JUST STOP
To calculate profit, you __________. Choose the answer.
A.) subtract the costs from the revenue
B.) add up the revenue
C.) add up the revenue and the costs
Answers
To calculate profit, a person must subtract the costs from the revenue. Option A is correct.
What is the profit?Profit is defined as the financial advantage obtained when the income generated by a commercial activity exceeds the expenses, costs, and taxes associated with the activity in question. To determine profit, subtract the costs from the revenue.
Profit is the money left over after deducting company expenditures. Profit is classified into three types: gross profit, operational profit, and net profit. The gross profit is the highest. It demonstrates how much money was left over after paying for the products and services offered.
Therefore, option A is correct.
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Determine whether the following statement is true or false: The dividend discount model indicates that the value of a stock is the present value of the dividends it will pay over the investor's horizon, plus the present value of the expected stock price at the end of that horizon.
Answers
The statement is generally true, as the dividend discount model is a widely used method for valuing stocks based on their expected future dividends.
The model also takes into account the required rate of return on the investment and the expected growth rate of dividends, which can affect the present value of the stock's expected future cash flows. Additionally, the model assumes that the investor will hold the stock for the entire horizon period, and may not account for changes in market conditions or other unforeseen events that could impact the stock's future performance.
The Dividend Discount Model (DDM) is a financial valuation method that calculates the intrinsic value of a stock based on the present value of its future dividends and the expected stock price at the end of the investor's horizon. This model is based on the concept of time value of money and assumes that dividends will grow at a constant rate over time. The DDM is especially useful for valuing stocks of stable, dividend-paying companies.
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