Suzanne has purchased a car with a list price of $23,860. She traded in her previous car, which was a Dodge in good condition, and financed the rest of the cost for five years at a rate of 11.62%, compounded monthly. The dealer gave her 85% of the listed trade-in price for her car. She was also responsible for 8.11% sales tax, a $1,695 vehicle registration fee, and a $228 documentation fee. If Suzanne makes a monthly payment of $455.96, which of the following was her original car?
a. 2004 Intrepid
b. 2008 Neon
c. 2005 Viper
d. 2007 Dakota

Answers

Answer 1

Answer:

its a

Explanation:


Related Questions

What do safeguarding devices do to protect the worker?

Select the 3 answer options that apply.

Detects operator contact with the machine's point of operation


Prevents operator contact with the machine's point of operation

Answers

Answer:

Answer: Prevent contact:

Explanation:

]The safeguard must prevent hands, arms, and any other part of a worker's body from making contact with dangerous moving parts. A good safeguarding system eliminates the possibility of the operator or another worker placing parts of their bodies near hazardous moving parts.

Safeguarding devices prevent or detect operator contact with the point of operation to protect the worker. The correct option is b.

What is a safeguarding device?

Safeguarding devices are protective measures consisting of the use of specific technical means, to protect workers from hazards that cannot be reasonably removed or sufficiently limited by design. These devices encompass a variety of equipment that prevents or limits access to the hazards. These can include everything from controls that require the worker to use both hands, gates that block access to moving parts, and sensing devices that identify when the worker is too close to the hazard.

Employers are responsible for safeguarding machines. Any machine part, function or process with the potential for causing an injury must be safeguarded using control methods that prevent employee contact with hazardous areas through effective machine guarding techniques. Almost all new machinery is available with safeguards installed by the manufacturer.

However, used or older equipment may require either purchasing additional safeguards or building and installing them in-house.

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Congress passed the Sarbanes-Oxley Act to ensure that investors invest only in companies that will be profitable. select an option False 2. The standards of conduct by which actions are judged as loyal or disloyal are ethics. select an option True 3. The primary accounting standard-setting body in the United States is the Securities and Exchange Commission (SEC). select an option True 4. The historical cost principle dictates that companies record assets at their cost and continue to report them at their cost over the time the assets are held. select an option True 5. The monetary unit assumption requires that companies record only transactions that can be measured in money.

Answers

Answer:

1. False

2. False

3. False

4. True

5. True

Explanation:

1. False: Congress passed the Sarbanes-Oxley Act to ensure that investors invest only in companies that will be profitable.

Sarbanes-Oxley Act of 2002 is a legal framework which was passed by the 107th U.S Congress on the 30th of July, 2002. The law required that investment banking be completely made rid of research analysts who works at a broker-dealer firms, so that the analysts are not influenced to write favorable reports to enhance their potential investment banking businesses.

Hence, it is a federal law that imposes a stiffer penalty for any securities related law break offence by the accountants, auditors etc by mandating strict reforms to the existing securities regulations.

2. False: The standards of conduct by which actions are judged as loyal or disloyal are ethics.

Ethics can be defined as a standard of conduct that judges a person's action as either right or wrong.

Hence, it's a set of both written and unwritten principles, values or rules of moral conduct that guides (governs) human behaviors. Ethics is a reflection that is typically based on identifying what is good or bad, right or wrong and just or unjust with respect to human behaviors.

3. False: The primary accounting standard-setting body in the United States is the Securities and Exchange Commission (SEC).

In the United States of America, the financial accounting standards board (FASB) is the primary accounting standard-setting body.

The financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining financial accounting and reporting standards for general guidance of individuals or capital providers such as investors, issuers and auditors.

4. True: The historical cost principle dictates that companies record assets at their cost and continue to report them at their cost over the time the assets are held.

5. True: The monetary unit assumption requires that companies record only transactions that can be measured in money.

The quality of the report Jamie turned in was lower than expected. Here was
part of his explanation: 'Large portions of the material came from Luke down
the hall." What likely character flaw does this reveal in Jamie?

Answers

Answer:

he was not doing his job right? im sorry if this is wrong

Explanation:

Answer:

B.Lack of willingness to take responsibility

Explanation:

The unemployment rate may underestimate the true extent of unemployment if: Question 26 options: many part-time employees would like to work fulltime, but are unable to get the additional work. employees increase the number of hours they work overtime. there are a large number of people working in the underground economy. people are pretending to look for work so that they can continue receiving unemployment benefits.

Answers

Answer:

there are a large number of people working in the underground economy.

Explanation:

The unemployment rate is the rate of people in the labour force that is without a job but they are actively looking for employment

Types of unemployment

structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition. Structural unemployment tends to be permanent.  

Frictional unemployment:  the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.

Voluntary unemployment: e.g. worker at a fast-food restaurant who quits work and attends college.

Cyclical unemployment: it occurs as a result of fluctuations in the economy. Unemployment would be high in a downturn and low in a boom  

If a large number of people are working underground, they would not be counted as part of the labour force and so the labour force would be smaller. This understates unemployment rate

Cat Chaser. Annette, who is angry because her neighbor, William, allows his dog to chase her cat, decides that she wants to get even. She moves a number of farm animals into her backyard and begins playing music at all hours of the night. She also steals a nice lawn chair off William's deck. She Antends to keep the chalt. Annette further took a rake off William's deck that she plans to return after she finishes raking her leaves. William did not give her permission to take the rake. Willam is unhappy about the whole situation and wants to sue. What claim would William have against Annette for taking the lawn chair?
A. Negligence
B. Conversion
C. Harassment
D. Trespass to personal property
E. Private nuisance

Answers

D Because Annette trespassed and stole the chair. There should be a theft answer, for both criminal and civil.

D. trespass to personal property

The government passes a law that allows a substantial subsidy for every acre of land used to grow tobacco. How does this program affect the​ long-run supply curve for​ tobacco? The​ long-run supply curve for tobacco will A. shift to the right because the price of tobacco will increase. B. shift down because . C. shift because tobacco production will become profitable. D. not change because the minimum​ long-run average cost of production will not change. E. become instead of horizontal because the costs of inputs will change.

Answers

Answer: C. shift right/ out because tobacco production will become profitable.

Explanation:

Subsidies reduce the cost of using something because the government would sponsor it. The cost of farming tobacco will therefore reduce in this instance. Tobacco companies will therefore incur less cost to acquire tobacco and so will start making more profit.

This will encourage other firms to come into the tobacco market as time goes on. As more firms enter, there will be a larger supply of tobacco. The supply curve will then shift right to depict this.

Select all that apply Job cost sheets can be used to: (Check all that apply.) Multiple select question. provide a subsidiary ledger for the Raw Materials Inventory account. provide a subsidiary ledger for the Finished Goods Inventory account. monitor costs incurred to date and to predict and control costs for each job. provide a permanent record for the Cost of Goods Sold account.

Answers

Answer:

provide a subsidiary ledger for the finished goods inventory account

monitor costs incurred to date and to predict and control costs for each job

provide a permanent record for the cost of goods sold account

Explanation:

job cost sheet is a recording of all expenses that should be related to the job segment or an individual job.

Also it give the subsidiary ledger for the finished goods. It checks the cost that should be incurred till date and to predict and control the cost. Moreover, it gives the permanenet record for the cost of goods sold

These 3 above statements should be considered

The journal entry to record the use of direct materials in process costing is to: Multiple choice question. debit Raw Materials Inventory and credit Work in Process Inventory. debit Work in Process Inventory and credit Raw Materials Inventory. debit Raw Materials Inventory and credit Factory Overhead. debit Factory Overhead and credit Raw Materials Inventory.

Answers

Answer:

debit Work in Process Inventory and credit Raw Materials Inventory

Explanation:

Inventory is an asset and a debit to an asset is an increase in that asset while a credit to an asset is a decrease in the value of the asset.

Direct material is an example of a raw material and as such when used in processing, the account balance reduces while work in progress which is the next product in the processing of raw materials increases.

Hence going by the principles stated earlier, the journal entry to record the use of direct materials in process costing is to debit Work in Process Inventory and credit Raw Materials Inventory.

Abe receives a check from Bea for fixing Bea's car. Bea's bank is Bank B. Abe deposits the check into his bank, Bank A. Select all the statements that correct describe the check-clearing process. Multiple select question. Bank A increases its reserves at the Federal Reserve Bank by more than the amount of the check. Bank A increases Abe's checkable deposits by the amount of the check. Total reserves in the banking system remain unchanged. Total reserves in the banking system increase.

Answers

Answer:

Bank A increases its reserves at the Federal Reserve Bank by more than the amount of the check.

Bank A increases Abe's checkable deposits by the amount of the check.

Total reserves in the banking system remain unchanged.

Explanation:

In the case when Abe received the check from bea in order to fixed out the bea car so here Bank A should increased the reserve that should be exceed the check amount

Also it increased the abe checkable deposit via the amount check and the total reserves should remain the same

These should be considered

Job cost sheets can be used to: (Check all that apply.) Multiple select question. provide a permanent record for the Cost of Goods Sold account. monitor costs incurred to date and to predict and control costs for each job. provide a subsidiary ledger for the Finished Goods Inventory account. provide a subsidiary ledger for the Raw Materials Inventory account.

Answers

Answer: • provide a permanent record for the cost of goods sold account

• monitor costs incurred to date and to predict and control costs for each job.

• provide a subsidiary ledger for the finished goods inventory account.

Explanation:

Job cost sheet refers to the document that is used for the recording of the manufacturing costs and it is used as a subsidiary ledger for the work in process account due to the fact that it contains every details about the job in process.

From the options given, the job cost sheets can be used to:

• provide a permanent record for the cost of goods sold account

• monitor costs incurred to date and to predict and control costs for each job.

• provide a subsidiary ledger for the finished goods inventory account.

Sharon joined a team that was responsible for boosting sales on last year's electronic models. The team began in January and was scheduled to run until May, meeting once a week. The team consisted of four women all with marketing and sales background. When the group first met, they learned they had much in common, outside of work. Now, the majority of time each meeting was spent talking about spouses, children shopping, and hobbies. At the first meeting in March, one of the four said, "You know, we have to have a presentation ready in less than two month. That seems to set everyone in motion. The group quickly divided responsibilities and set to work. The presentation was a success. This scenario describes
A. punctuated equilibrium
B. parallel teams
C. the storming stage of team development
D. sequential interdependence
E. similarity attraction approach

Answers

Answer:

A. Punctuated equilibrium

Reason:

Definition is a sequence of team development during which not much gets done until the halfway point of a project, after which teams make necessary changes to complete the project on time.

          According to the punctuated-equilibrium model of group evolution, groups frequently advance during short bursts of change following lengthy periods without change.

Answer : A .Punctuated equilibrium is how Sharon and her team's condition is described.

Punctuated equilibrium - what is it?

        The team initially doesn't appear to make much progress while in   punctuated equilibrium. The crew starts to work to make things happen and speed up their efforts as they get closer to their deadline.

      In fact, Sharon's team experienced exactly that. The ladies initially showed a greater interest in exchanging personal experiences and anecdotes. However, they discovered their deadline was approaching about halfway through, so they started to work to finish the project.

For this question, the unanswered choices are:

punctuated equilibriumparallel teamsthe storming stage of team developmentsequential interdependencesimilarity attraction approach

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4. When Jenna confided in Lew and Al that she, too was concerned about adding additional risk, Lew suggested that they explore the possibility of one of the newest forms of business ownership, a(n) ____________, which has very flexible ownership rules and would give them more choices in how the company's earnings are taxed while still protecting all owners from high levels of risk. Group of answer choices

Answers

Answer:

limited liability company

Explanation:

A limited liability company (LLC) can be regarded as a business structure that is very common in the United States, these business structure can be regarded as a one in which the owners can not be regarded as been personally liable for debts as well as the liabilities of the company. Limited liability companies can be regarded as hybrid entities which is the combination of the features of corporation s well as partnership

McDonnell-Myer Corporation reported net income of $741 million. The company had 544 million common shares outstanding at January 1 and sold 36 million shares on February 28. As part of an annual share repurchase plan, 6 million shares were retired on April 30 for $47 per share. Calculate McDonnell-Myer's earnings per share for the year. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Answers

Answer:

the earning per share is $1.43 per share

Explanation:

The computation of the earning per share is shown below:

= Net income ÷ weighted no of shares

= $741 million ÷ (544 million shares - 36 million × 10 ÷ 12 + 6 million × 8 ÷ 12)

= $741 million ÷ (544 - 30 + 4)

= $1.43 per share

Hence, the earning per share is $1.43 per share

The same should be considered and relevant

What it means monthly you don't have to pay per week?

Answers

Answer:

You have to pay once a month

Explanation:

It depends what they're asking. Either you might have to pay at the beginning of the month, or at the end of the month. If you don't pay in time, you have to pay an extra fee.

What is the answer I need help!!

Answers

Answer:

I, II, and III

Explanation:

Customer sales service is representative of the services given to a customer who has bought or continues to buy a product or service from a company and includes after sales service that can be provided by a manufacturer, retailer, a third party training provider, or automated self service. The provision of customer sales service improves the relationship between the customer and the company, and it is an important aspect of customer satisfaction

Therefore, customer sales service comprises technical support, customer service, and automated customer service which is the option I, II, and III

Which of the following is a correct statement regarding the standard unmodified opinion audit report? Group of answer choices The auditor's responsibility paragraph includes a statement that the auditors are responsible for selecting the appropriate accounting principles. The format of the audit report for public and nonpublic entities are identical. The audit report includes the name of the lead partner on the audit. The auditor's responsibilities paragraph includes a statement that the auditor considers internal controls when designing the audit procedures performed.

Answers

Answer:

The auditor's responsibilities paragraph includes a statement that the auditor considers internal controls when designing the audit procedures performed.

Explanation:

Standard-Unmodified Opinion Audit Report

This form of Standard is simply known as the uniform wording ofte used in audit reports while Unmodified opinion simply means that the auditor's opinion about the financial statements contains no material exceptions or qualifications. Standard Unmodified Opinion Audit Report is virtually needed by private Company.

Auditor's Responsibility

The responsibility of an auditor is to express an opinion on financial statements based on audits made. Audits conducted in accordance with auditing standards is generally accepted in the United States of America. Those standards require that auditor plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

The conditions for Standard Unmodified Opinion Audit Report includes;

1. All financial statements inclusive

2. Sufficient appropriate evidence accumulated

3. Financial statements are presented fairly in accordance with GAAP or other framework etc.

A paper manufacturer is forced to make staff cutbacks because of declining profits. It decides to cut back each employee's hours and pay by one-half day per week rather than laying off two people. Senior managers believe that by allowing all their employees to keep their jobs, they are producing the greatest good for the greatest number of people. Which rule for ethical decision making does this example show

Answers

Answer:

Utilitarian

Explanation:

Utilitarianism is a morality theory that advocated the actions in order to foster the happiness and the actions that result harm or unhappiness could be opposed. It is an action that could be right so this would create a happiness for the larger no of people as a group or society as a whole

So as per the given situation, it is a utilitarian theory

Higher uncertainty of losses forces property-casualty firms to _________. A. invest in more short-term assets than life insurance firms. B. invest in more long-term assets than life insurance firms. C. hold a lower percentage of capital and reserves than life insurance firms. D. invest in riskier equity securities than life insurance firms. E. conduct more separate accounts business than life insurance firms.

Answers

B: invest in more long term asserts than life insurance

What is the difference between a production function and an​ isoquant? A. A production function describes the minimum output that can be achieved with any given combination of inputs. An isoquant identifies the different types of inputs that can be used to produce various levels of output. B. A production function describes the minimum output that can be achieved with any given combination of inputs. An isoquant identifies all of the different combinations of inputs that can be used to produce one particular level of output. C. A production function describes the maximum output that can be achieved with any given combination of inputs. An isoquant identifies the different types of inputs that can be used to produce various levels of output. D. A production function describes the maximum output that can be achieved with any given combination of inputs. An isoquant identifies all of the different combinations of inputs that can be used to produce one particular level of output.

Answers

Answer:

Option d: Production function describes the maximum output that can be achieved with any given combination of inputs. An isoquant identifies all of the different combinations of inputs that can be used to produce one particular level of output.

Explanation:

Factors of Production

They includes Inputs in the production process (labor, capital, materials)

Production Function

This simply is that function that is displaying or showing highest output firm can produce. It depicts what technically feasible is and when firm operates efficiently.

Isoquant

This is simply refered to as a curve tbat depicts or shows all possible efficient combinations of input that are very able to produce a certain quantity of output. It usually a downward sloping and convex and it can never slope upward. This shows also that adding more inputs keeps output constant.

Isoquant Map

This is simply a graph showing a combination of a number of isoquants, used to describe a production function.

Suppose that Sandy owns a farm in North Carolina and Pat owns a farm in lowa, and Sandy's farm is generally more productive than Pan's. If both Sandy and Pat sell their com in the same market Sandy should produce the output at the marginal cost that is
A. equal to the marginal cost of Pars production
B. greater than the marginal cost of Pat's production
C. less than the marginal cost of Pat's production
D. equal to total revenue in the market

Answers

Answer:

A. equal to the marginal cost of Pars production

Explanation:

In the case when both sandy and pat sold their come in the similar market so here sandy should generated the result at the marginal cost that should be equivalent to the pat marginal cost of production

So as per the given situation, the option a is correct

And, the rest of the solutions are considered to be wrong

Which of the following conflicts led to an expansion of Presidential foreign policy power?

1)World War I
2)World War II
3)Vietnam
4)None of these choices are correct.

Answers

They answer is Vietnam and world war 1

Of all the given conflicts, the two that led to an expansion of Presidential foreign policy power were World War I and Vietnam. Hence, options A and C are correct.

What is Presidential foreign policy?

In any country, there are few higher authorities that are involved in all the policies that are run by the government of that nation, and the policy that is related to foreign affairs involves the President of the country. There is no such separate foreign policy that is run by the President of the country.

In the case of the  U.S., the constitution of the country parcels the powers regarding foreign relations to both the houses that is the executive and the legislative. Although some powers are also granted to the military, while some to the President, and others, like the regulation of foreign commerce, to Congress. With the separation of power, there is a debate also spawned over the roles of the President and Congress in foreign affairs.

Thus, Options A and C are correct.

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Explain the tradeoffs involved in setting an ideal level of inventory for a particular product. What are the costs if too much is maintained? What are the costs if too little is maintained?

Answers

Answer:

An ideal inventory is difficult to have.

Explanation:

Inventory is the number of goods and services stored and is accompanied asset and thus management of that asset is a very important aspect of the business. If too much inventory is maintained the inventory can lead to liability. If too little inventory is maintained then it leads to shortages of raw material and work in progress.

On January 1, 2013, Warfield Co. purchased a $600,000 machine, with a five-year useful life and no salvage value. The machine was depreciated by an accelerated method for book and tax purposes. The machine's carrying amount was $240,000 on December 31, 2014. On January 1, 2015, Warfield changed the depreciation method prospectively to the straight-line method for financial-statement purposes. Warfield can justify the change. Warfield's income tax rate is 30%. On December 31, 2015, what amount should Warfield report as deferred income tax

Answers

Answer:

$0

Explanation:

In the case when the depreciation method is changed so it should be treated propectively. The past year depreciation amount remains the same. So the starting year of change having no difference should be produced but the beginning to the closing year of change the deferred tax liability should be recorded the difference occured in the future that lies between the book and tax depreciation

So, it should be zero

Suppose that the market for haircuts in a community is a perfectly competitive constant-cost industry and that the market is initially in long-run equilibrium. Subsequently, an increase in population increases the demand for haircuts. In the long run, we expect that: Question 7 options: a) firms will leave the market, driving the price of haircuts up and the profits of individual firms up. b) more firms will enter the market, driving the price of haircuts up and the profits of individual firms back down to zero. c) firms will leave the market, driving the price of haircuts up and the profits of individual firms back down to zero. d) more firms will enter the market, driving the price of haircuts down and the profits of individual firms back down to zero.

Answers

Answer:

d) more firms will enter the market, driving the price of haircuts down and the profits of individual firms back down to zero.

Explanation:

In the case when the demand is increased, the price of haircuts would also increased and due to this the firm could earn positive economic profit. And for earning the economic profit in a positive way, the no of firm should be rised that increased the supply so automatically the prices are decreasing

Therefore the above option should be the answer

Do you think the directors of tgh word right to target a niche market or should they just sell sports shoes to a market? Justify your answer

Answers


A niche market does not mean a small market, but it involves specific target audience with a specialized offering.


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During 2020 Carne Corporation transferred inventory to Nolan Corporation and agreed to repurchase the merchandise early in 2021. Nolan then used the inventory as collateral to borrow from Norwalk Bank, remitting the proceeds to Carne. In 2021 when Carne repurchased the inventory, Nolan used the proceeds to repay its bank loan. This transaction is known as a(n) assignment for the benefit of creditors. product financing arrangement. installment sale. consignment.

Answers

Answer: product financing arrangement

Explanation:

A product financing arrangement is referred to as a transaction whereby a company sells an inventory and then agrees to repurchase it.

The purpose of the product financing arrangement is to allow the seller to be able to arrange the financing of its original purchase of the inventory. Therefore, the above situation between Carne Corporation and Nolan Corporation depicts a product financing arrangement.

Greenbaum Inc. sells a new product with a 2-year warranty. The company estimates that during the two years, the costs and related probabilities are: Year 1: $20,000 (40%) and $30,000 (60%); Year 2: $30,000 (70%); $20,000 (30%).The company's effective interest rate is 5%. Calculate the estimated warranty liability using the expected cash flow method.

Answers

Answer:

$49,252

Explanation:

Calculation to the estimated warranty liability using the expected cash flow method.

Estimated warranty liability =[($20,000 x .4)+($30,000 x .6) x 0.95238]+ [($30,000 x .7)+($20,000x .3) x 0.90703]

Estimated warranty liability =[($8,000+$18,000)×0.95238]+[($21,000+$6,000)×0.90703

Estimated warranty liability =($26,000×0.95238)+($27,000×0.90703)

Estimated warranty liability =$24,762+$24,490

Estimated warranty liability =$49,252

Therefore the estimated warranty liability using the expected cash flow method is $49,252

Vaughn Manufacturing uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become uncollectible. Accounts receivable are $421,400 at the end of the year, and the allowance for doubtful accounts has a credit balance of $3,027. (a) Prepare the adjusting journal entry to record bad debt expense for the year. (b) If the allowance for doubtful accounts had a debit balance of $839 instead of a credit balance of $3,027, prepare the adjusting journal entry for bad debt expense.

Answers

Answer:The adjusting journal entry will be

a)Debit Bad debts expense  $9,615  

Credit Allowance for doubtful accounts   $9,615

b))Debit Bad debts expense  $13,481

Credit Allowance for doubtful accounts    $13,481

Explanation:

Estimated uncollectible= $421,400 × 3% = $12,642

Allowance for doubtful accounts with  a credit balance of $3,027

Allowance for Bad debts expense = $12,642 - $3,027= $9,615

Account titles and explanation                 Debit                Credit

Bad debts expense                                   $9,615

Allowance for doubtful accounts                                       $9,615        

When the Allowance for doubtful accounts has a debit balance of $839

$12,642+$839= $13,481

Account titles and explanation                 Debit                Credit

Bad debts expense                                 $13,481

Allowance for doubtful accounts                                      $13,481    

 

A tile manufacturer has supplied the following data: Boxes of tiles produced and sold 520,000 Sales revenue $ 2,132,000 Variable manufacturing expense $ 650,000 Fixed manufacturing expense $ 464,000 Variable selling and administrative expense $ 260,000 Fixed selling and administrative expense $ 312,000 Net operating income $ 446,000 What is the company's unit contribution margin

Answers

Answer:

unitary contribution margin= $2.52

Explanation:

First, we need to calculate the total variable cost:

Total variable cost= Variable manufacturing expense + Variable selling and administrative expense

Total variable cost= 560,000 + 260,000

Total variable cost= $820,000

Now, the unitary variable cost and the selling price:

unitary variable cost= 820,000 / 520,000= $1.58

Selling price= 2,132,000 / 520,000= $4.1

Finally, the unitary contribution margin:

unitary contribution margin= selling price - unitary variable cost

unitary contribution margin= 4.1 - 1.58

unitary contribution margin= $2.52

What is the intent of a Pigouvian​ tax? A. To encourage producers of a negative externality to increase production to the socially optimal level. B. To eliminate the force of the invisible hand in market transactions. C. To mandate by government fiat the reduction of production to the socially optimal level. D. To induce producers of a negative externality to reduce production to the socially optimal level.

Answers

Answer:

D

Explanation:

A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.

Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible

Coase theorem has been proposed as a solution to externality. According to this theory, when there are conflicting property rights, bargaining between parties involved can lead to an efficient outcome only if the bargaining cost is low

Another solution to negative externality is through the activities of charities. Charities can raise donations to limit or regulate the activities of firms that constitutes a negative externality.

Other Questions
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