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Suppose the government wants to increase farmers’ incomes. Why do price supports or acreage limitation programs cost society more than simply giving farmers money?
Price acreage and supports limitations cost society more than the dollar cost of these programs as the higher price that results in either case will decrease quantity demanded and hence consumer surplus, leading to a deadweight loss since the farmer is not able to capture the lost surplus. Giving the farmers money does not result in any type of deadweight loss, but is merely a redistribution of surplus from one group to another.
Purpose of Issue CDs benefit both issuers and investors. From the issuers (banks) point of view, CDs are issued foreseeing the advantages over conventional deposits. The motives
There are dissimilar views on how an organisation can gain competitive advantage, but contemporary research is placing greater emphasis on the resource-based view. Expl
1. Consider the following cash flows and reversion: There is an $80,000 cash outflow at time zero. BTCFs for years 1-4, respectively, are $10,000, $20,000, $20,000, and $25,000.
Suggestion regarding Credit limit. Should it be approved or not, what should be the amount of credit limit that electronics give to Booth Plastics.
What are the Remedies for overtrading Short-term solutions Speeding up collection from customers. Slowing down payment to suppliers. Maintaining lower inventory
what is amount of cash dividend if investor buys share of 100 at premium of 400.
What is meant by a currency trading at a discount or at a premium in the forward market? Answer: The forward market includes contracting today for the future purchase or sale o
Q. Define the Constructive Receipt? Constructive Receipt - A taxpayer is considered to have received income even though monies are not in hand, it may have been set aside or ot
Flowcharts - Documenting the accounting system Depict in outline the sequence of events in a system showing document flow and department or function responsible for every ev
Is book value the best proxy to the value of the shares? No. According to A6 it would be a miracle if the number that appears in the Shareholders' Equity had anything to do wit
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