When government increases the level of government transfers, it have to mobilize additional resources. This mobilization of additional resources induces the government to raise taxes or borrow more. Higher borrowing, at present, also translates in to higher taxes albeit in future time period.
So, government has to resort to tax increase in order to increase the level of government transfer.
However, such higher taxes induce the workers to work less as they realize that their productive endeavors in face of tax increase is not culminating in enough rewards.
Secondly, as taxes rise, people resort to ways that can help them in avoiding higher taxes. This means instead of devoting resources for productive uses they utilize them for unproductive or rent-seeking (tax avoidance) activities.
Both these consequences of higher taxes results in lower production and shrinking of economic pie.
Hence the answers are 1) Higher taxes may be necessary to finance increased transfer payments, leading to a reduction in hours worked because of a decrease in the reward for productive activity. and 2) Greater transfer activity diverts productive resources into rent-seeking activity.
In an economy, people try to reduce their tax liability to the extent it is possible, so they try to devote their time and energy to find out the ways to reduce their tax liability. Moreover, if they are not able to reduce their tax liability then they think of how they can fit into the category of people who qualify for those transfer payments and thus resulting in the reduction of the economic pie.
Further Explanation:
Transfer payments might reduce the size of the economic pie in different ways
People may devote more time and energy to avoidance of taxes necessary to finance increased transfer payments:
It is in the nature of human beings to pay less and gain more, but sometimes that cannot be good for an economy. When the government tries to redistribute its income from taxes by way of transfer payments, people of the economy think that “why their hard-earned money is going to be transferred to someone else by way of taxes.” This is the main reason why people try to find out the loopholes in the laws of income tax so that they can avoid paying tax and devotes most of their time in finding these loopholes in the economy. This avoidance of tax can lead to the great plunge in the economic pie.
Increased transfer payments may divert productive resources into producing more goods and services:
An increase in the transfer payments of a country may lead to an increase in the rent-seeking activities of the individuals. In other words, people try to find out how they can fit into that segment of individuals who are going to gain from these transfer payments as it will be the only way to get their money back from the government. Since tax avoidance is illegal in every country, which leads the people of an economy to this way of getting their money back and some people do gets fit into this segment of the economy and eventually result in decline in the economic wealth.
Higher taxes may be necessary to finance increased transfer payments, leading to a reduction in hours worked because of a decrease in the reward for productive activity:
It is true that if not in the present then in future there will be a need for increased taxes to funds those transfer payments. Since the government is going to charge more from the remuneration earned by people by providing goods and services which will have an effect of negative externalities in an economy. Due to the negative externalities, people will try to deliver lesser goods and services as compared to when they were delivering more thus resulting in decreased production of goods and services in an economy. This is called “the deadweight loss” which means resulting in the loss of consumer and producer surplus. For this benefit-cost analysis is done to ensure that the social welfare gains from the particular transfer payments exceed the deadweight loss of taxes required to fund these transfer payments.
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Answer details:
Grade: Senior School
Subject: Macro Economics
Chapter: Transfer Payments
Keywords: Economic pie, transfer payments, reduction in tax, tax avoidance, reduction in working hours, the deadweight loss, benefit cost analysis, plunged economic pie, qualification for transfer payments.
We have an intuitive appreciation for those who are able to earn a profit. We can see that resources flow to those who successfully coordinate inputs and serve customers. For this written assignment you are to examine the other side—the side of losses. The market system is a system of both profit and loss. Why is loss essential to the market process? What function does loss have? What role does it play? What is the downside if we used government to shield companies from incurring losses? Explain.
Jill has an escalator clause in her labor contract that gives her a raise equal to the change in the consumer price index (cpi). last year she earned $40,000 and the cpi was 100. if the cpi this year is 110, her new salary is:
Whatever the quality improvement approach, what key concept(s) is/are common between each approach?
The common key concepts that are common to the quality improvement approach are the following;
- Usage of QI tools, this is used for mapping, analyzing and collecting data.
- Outcomes and measuring are also used.
- Lastly, application of statistical process control
As a member of a typical of traditional work group, joshua should expect to be responsible for:
Carlos is a salesperson for an industrial equipment company. carlos calls on manufacturers and spends most of his time talking with system operators who work on the factory floor. while carlos is able to get the operators interested in his products, he is often unable to make a sale. carlos needs to:
What Carlos should do in order to make a sale with his products is to be able to determine the purchase decisions and their influencers for him to be able to make a sale with the products that he sells to his consumers.
Warren brought his television in for repairs. after warren left the store, gunmen came in to rob the proprietor. as they ran out, warren's television was knocked over and destroyed. warren demanded that the proprietor of the store compensate him for the fair market value of the television. the bailee:
In the given case, Warren demanded that the proprietor of the store compensate him for the fair market value of the television. The bailee is not liable, since the damage was caused by the act of a third party.
What is he bailee?A bailee is someone who receives property from the owner (known as a bailor) and holds it for the owner for a specific purpose, such as custody or repair.
The bailee, also known as a custodian, is entrusted with possession of the good or property by another person known as the bailor. This legal relationship, known as a bailment, is based on a contractual agreement between the bailor and the bailee.
Therefore, In the given case, Warren demanded that the store's owner compensate him for the television's fair market value. Because the damage was caused by the act of a third party, the bailee is not liable.
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Emma promises to pay greta $400 because "she does not have as much money as other people." emma's promise is not enforceable because: greta has not given consideration in return. emma could have paid more. society does not want gifts cheapened by making them legally enforceable. the redistribution of wealth on a one-to-one basis is not a valid social goal.
Optimize network of suppliers, plants, and distribution centers is an outcome of the _______________ scm function.
Optimizing the network of suppliers, plants, and distribution centers is an outcome of the logistics planning and management function in Supply Chain Management. The objective is to offer high quality goods and services at the least possible cost.
Explanation:The outcome of optimizing the network of suppliers, plants, and distribution centers is part of the Supply Chain Management (SCM) function. Specifically, it is a result of the logistics planning and management function within SCM.
The objective of the logistics function is to coordinate all efforts to move goods and services from producers to consumers in the most efficient manner possible, offering high quality products and services at the lowest possible cost. It includes network design, material handling, transportation, warehouse management, and inventory management.
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Excise taxes are collected by which levels of government? i. Local government ii. State government iii. Federal government
d. ii State government and iii Federal government only
Volumetric thirst is associated with _____ while osmometric thirst is associated with _____.
Final answer:
Volumetric thirst is triggered by a decrease in blood volume, prompting mechanisms to increase blood pressure and water intake, while osmometric thirst results from an increase in blood osmolality, leading to thirst sensation and water conservation efforts through hormonal responses.
Explanation:
The question pertains to the mechanisms of thirst, specifically volumetric thirst and osmometric thirst. Volumetric thirst is associated with a decrease in blood volume, which can result from water loss through respiration, evaporation, or urination. In response, the body may increase blood pressure via vasoconstriction and promote water consumption. On the other hand, osmometric thirst is associated with an increase in blood osmolality, mainly due to a high concentration of solutes in the blood. This condition triggers osmoreceptors in the hypothalamus, leading to the sensation of thirst and the release of antidiuretic hormone (ADH) to conserve water. Both mechanisms are crucial for maintaining homeostasis, ensuring that both volume and osmolarity of the body fluids are preserved within their optimal ranges. The thirst response is a complex interplay of hormonal and neuronal responses that maintain fluid balance, particularly important in dehydration scenarios or fluid loss.
What is the starting point for total quality management
Answer:
The correct answer is: customer focus.
Explanation:
Customer focus is the milestone of quality management. It is the degree in which a firm satisfies the customers' needs and expectations on a regular basis. Customer focus measures the success of a company on giving its target clientele the product or service they request according to what the customers demand from it.
sam uses public transport to commute to work. however, he has always wanted to own a car and believes commuting by car will save time. this scenario exemplifies sam's _____.
Windows ____ is microsoft's fastest, most efficient operating system to date, offering quicker application start up, built-in diagnostics, automatic recovery, improved security, and enhanced searching and organizing capabilities.
Windows 10 offers cut-off date support, the most powerful ye t intuitive security system to date, and most of all a balanced interface which is equally friendly to desktop and laptops as well as tablets and touch devices.
On january 1, 2016, mr. bravo formed a new corporate (bravo unlimited) by investing $12,000 cash in capital stock. prepare the general journal entry (without explanation) needed. if no entry is required then write "no entry required."
An audit client failed to maintain copies of its procedures manuals and organizational flowcharts. what should the auditor do in an audit of financial statements?
a. document the auditor's understanding of internal controls.
b. restrict the auditor's responsibility to assess the effectiveness of controls in the audit engagement letter.
c. assess control risk at the maximum level.
d. issue a qualified opinion on the basis of a scope limitation.
Which of michael porter's four competitive strategies is autozone trying to follow? discuss?
When ladies' home journal ceased publication in 2014, it still had plenty of advertisers interested in buying space in the magazine?
While placing his order, a customer tells the waiter to avoid bell peppers of any kind or color in the food since he is allergic to the vegetable. in spite of informing the server of his choice, a slice of bell pepper sits right on top of the dish he ordered. in addition to a service breakdown, this could lead to:?
An allergic reaction should not be treated lightly because this can actually result in death of the victim. So in this casem this could actually lead to serious illness or death of the customer. Which adds a very huge liability for the restaurant or organization.
Preferred stock of leaping dolphin inc. pays 8% on the $100 par value. what is the value of the stock if the appropriate discount rate is 6%?
Calculate the value of the stock:
The dividend on preferred stock is received constantly for perpetuity. So, the value of preferred stock can be calculated by dividing the dividend with the required rate of return. If the dividend rate is 8% on par value of $ 100 and required rate is 6% the value of preferred stock will be P = (100x0.08)/0.06 = 8/0/06 = 133.3333333
Charles and nancy have decided to sell their family business and would like to transfer ownership to the next generation. which harvesting form would be best?
In a situation where Charles and Nancy have decided to sell their family business and would like to transfer ownership to the next generation, then out of the choices provided above, harvesting by selling to a strategic buyer would ideally be the best option for them. Therefore, the option D holds true.
What is the significance of harvesting?Harvesting can be referred to or considered as a method of making investments in and out of a business. Harvesting is done with an intention to derive possibly higher returns or take the advantage of any benefits that are there.
When Charles and Nancy decide to sell off their business to a strategic buyer, he or she will make sure that the business runs smoothly while eyeing for business growth to exponential levels.
Therefore, the option D holds true and states regarding the significance of harvesting.
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The missing options are added below for better reference.
A)cash flow distribution
B)initial public offering
C)private placement
D)selling to a strategic buyer
Jimmy invests 4000 in an account that pays 5 annual interest compounded semiannually what is his balance, to the nearest cent, at the end of 10 years
To calculate the balance at the end of 10 years with compound interest, we use the formula A = P(1 + r/n)^(nt). P is the principal amount, r is the interest rate, n is the number of times the interest is compounded per year, and t is the number of years. In this case, the principal amount is $4000, the interest rate is 5%, and the interest is compounded semiannually (twice a year). Plugging the values into the formula gives the balance to the nearest cent.
Explanation:To calculate the balance at the end of 10 years, we need to use the compound interest formula. The formula is A = P(1 + r/n)^(nt), where A is the future balance, P is the principal amount, r is the interest rate, n is the number of times the interest is compounded per year, and t is the number of years. In this case, the principal amount is $4000, the interest rate is 5%, and the interest is compounded semiannually (twice a year).
Plugging the values into the formula, we get A = $4000(1 + 0.05/2)^(2*10).
Calculating this expression gives us A = $4000(1.025)^20. Evaluating this expression gives the balance to the nearest cent.
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The two general approaches to negotiation are ________ bargaining and ________ bargaining.
The two general approaches to negotiation are integrative bargaining and distributive bargaining.
What is bargaining?A type of negotiation known as bargaining or haggling in the social sciences occurs when a buyer and a seller of a good or service argue over the cost or particulars of a transaction. The deal is finalized if the negotiations result in an agreement on the terms.
A method of negotiation in which the parties work together to resolve their conflict in a way that benefits both of them. This tactic focuses on creating agreements that are advantageous to both parties and are based on their respective interests.
Every employee has a voice and a chance to address the issues that matter most to them during negotiations. But it's not just the workers' opinions that are heard; employers have an opportunity to express their concerns and come to a mutually beneficial conclusion.
Therefore, Negotiations are integrative bargaining and distributive bargaining.
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The minimum price that most consumers would pay for a given product is known as the ________ price.
Suppose you were to collect data for each pair of variables. you want to make a scatterplot. which variable would you use as the explanatory variable and which as the response variable
Final answer:
In creating scatterplots, the independent or explanatory variable is plotted on the x-axis, while the dependent or response variable is plotted on the y-axis. The independent variable influences the dependent variable, which is reflected in how data is visualized on the scatterplot.
Explanation:
When creating a scatterplot, you'll want to distinguish between the two types of variables: the explanatory variable and the response variable. The explanatory variable, also known as the independent variable, is the one you suspect might be causing changes or influencing the other variable. It is usually plotted on the horizontal axis (x-axis) in a scatterplot.
Whereas, the response variable, or dependent variable, changes in response to the explanatory variable and is plotted on the vertical axis (y-axis). A classic example involves time as an independent variable and distance as a dependent variable. In an experiment to measure the distance traveled by a car over time, time would be plotted on the x-axis because it is the independent variable that you control, and distance would be plotted on the y-axis as it is the outcome you are observing.
Laelle chocolates inc. is a confectionery company that manufactures candies. it does not use specific strategies to target children while marketing its products. instead, it uses the same strategies to promote its candies among all consumers in the market. this is an example of a(n) _____. question 15 options: multisegment targeting strategy individual targeting strategy undifferentiated targeting strategy concentrated targeting strategy
Ellie has been working for an engineering firm and earning an annual salary of $80,000. she decides to open her own engineering business. her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. ellie will cover her start-up expenses by cashing in a $20,000 certificate of deposit on which she was earning annual interest of $500. refer to scenario 13-9. ellie's annual economic costs will equal
Ellie's annual economic costs amount to $135,700, which includes both explicit costs of $55,200 and implicit costs of $80,500. Therefore, the correct answer to the question is option d) $135,700.
To calculate Ellie's annual economic costs, we need to consider both explicit and implicit costs.
Explicit costs include:
Office rent: $15,000Equipment rental: $3,000Supplies: $1,000Utilities: $1,200Secretary/bookkeeper salary: $35,000So, total explicit costs = $55,200.
Implicit costs include:
Foregone salary from her previous job: $80,000Foregone interest from the certificate of deposit: $500So, total implicit costs = $80,500.
Ellie's annual economic costs = Total explicit costs + Total implicit costs = $55,200 + $80,500 = $135,700.
Therefore, the correct answer is d) $135,700.
The complete question is:
scenario 13-9.
Ellie has been working for an engineering firm and earning an annual salary of $80,000. she decides to open her own engineering business. her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. ellie will cover her start-up expenses by cashing in a $20,000 certificate of deposit on which she was earning annual interest of $500.
refer to scenario 13-9.
ellie's annual economic costs will equal
a) $55,200
b) $75,200
c) $80,500
d) $135,700
Benjamin co. has three products a, b, and c, and its fixed costs are $67,200. the sales mix for its products are 3 units of a, 4 units of b, and 1 unit of
c. information about the three products follows: a b c projected sales in dollars $192,000 $192,000 $64,000 selling price per unit $55.00 $30.50 $32.00 contribution margin ratio 30% 25% 50% (a) calculate the company's break-even point in composite units and sales dollars. (b) calculate the number of units of each individual product to be sold at the break-even point.
What are the types of entities you might find in the electra bike manufacturing/production database management system?
The types of entities you might find in the electra bike manufacturing or production data base management system are the following;
- Inventory
- Materials
- Distribution
- Supplier
These are the entities that you can usually find in database management system
Bob says he has achieved his "dream job." as an engineer for a major defense systems company, he is responsible for using sophisticated airplane and weaponry equipment that creates the exact conditions that a professional may experience if he/she uses the equipment in a real-life situation. he spends several hours each day performing __________.
In a firm with a(n) _____ staffing policy, considerable resentment is caused among foreign nationals who are members of the international cadre and work with u.s. nationals, if pay is not equalized.