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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.
How do financial managers calculate the average tax rate? Financial managers calculate the average tax rate by dividing tax dollars paid by earnings before taxes (EBT).
Explain Capital Budgeting and its methods.
I am facing some problems in my assignment on the topic Preliminary Screening. Can anybody suggest me the proper explanation for it?
The authority and duties of members (shareholders) Members and shareholders shall together and severally protect, conserve and actively exercise the supreme authority of the co
PEST analysis Political for instance political culture, bureaucracy of regulating competition Economic for instance exchange rates, interest rates, taxation or busines
A Life Insurance Company invested $10,000,000 in pure-discount U.S. bonds in May 1995 while the exchange rate was 80 yen per dollar. The insurance company liquidated the investment
Why does most interbank currency trading worldwide involve the U.S. dollar? Answer: Trading in currencies worldwide is in opposition to a common currency which has international
applicability of an operating cycle in a vegetable growing business
Call provision is the right of the issuer to call back and retire the issued bonds before the maturity date. The issuer may call the bond and retire the bond by paying
Short sales : Short sales of a security means borrowing of an underlying security by an investor from other investors who are holding it (in Demat account) and selling it with
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