Public goods are typically provided by the state because they possess two key characteristics: non-excludability and non-rivalry. Non-excludability means that once the good is provided, it is difficult to exclude anyone from benefiting from it. Non-rivalry means that one person's use of the good does not diminish its availability for others.
Public goods are underprovided in the free market due to the free-rider problem. This occurs when individuals can benefit from the public good without contributing to its provision. Since people have no incentive to pay for something they can enjoy for free, private businesses may not have the motivation to produce public goods.
Therefore, state provision of public goods is necessary to ensure their provision and availability to everyone in society. Governments can use taxation and public funding to finance the production and maintenance of public goods, ensuring that they are accessible to all members of society.
False
User: A tenancy at will is created by an express contract by which property is leased for a specified period of time true or false
Answer:
1. False 2. True
Explanation:
1. The candidate for political office announcing that the policy to reduce immigration from abroad which, he says, economics clearly demonstrates will lead to higher output in the long run; is false.
What increases output are the factors of production of which labor is a major component. When there are more people willing and able to work in an economy, they help companies to produce more output but that is not the case when immigration is reduced, obviously that would reduce productivity and output.
2. However his second claim is right, that making trade more open between the US and other countries will increase output on the long run.
Trade barriers like tariffs and duties impede the level of trade between countries which could either reduce the amount of money countries make after netting off custom duties or the price of imported goods are increased by the effect of tariffs. Increased price means reduced demand
Hence if tariffs are replaced with subsidies in open trade, prices of U.S imported goods will fall and demand will increase.
Answer:
B) 1 shifts long-run aggregate supply left, 2 shifts long-run aggregate supply right
Explanation:
Full question
A candidate for political office announces the following policies which, he says, economics clearly demonstrates will lead to higher output in the long run: 1. increase immigration from abroad 2 make trade more open between the US and other countries. A) 1 and 2 both shift long-run aggregate supply left
B) 1 shifts long-run aggregate supply left, 2 shifts long-run aggregate supply right
C) 1 and 2 both shift long-run aggregate supply right.
D) 1 shifts long-run aggregate supply right, 2 shifts long-run aggregate supply left.
Aggregate supply, is the total supply of goods and services produced within an economy at a particular period and a specific price. It is also known as total output The increase in immigration from abroad will not increase aggregate supply or the total output thereby shifting the aggregate supply left meaning a decrease. Making trade more open between the US and other countries will increase the total output in the long run therby shifting the aggregate supply right meaning an increase in the total supply of goods and services produced in a particular period.
Answer:
1.103%
Explanation:
Data provided in the question:
Market debt-equity ratio = 0.65
Corporate tax rate = 40%
Interest on paid its debt = 7%
Now,
Debt ÷ Equity = 0.65
or
Debt = 0.65 × Equity
Weight of Debt = Debt ÷ (Debt + Equity)
or
= ( 0.65 × Equity ) ÷ ( 0.65 × Equity + Equity )
= 0.65 ÷ 1.65
= 0.3939
also,
Tax shield = Corporate tax rate × Interest paid on its debt
= 0.40 × 0.07
= 0.028
= 2.8%
Therefore,
The interest tax shield from its debt lowers Summit's WACC by
= Weight of Debt × Tax shield
= 0.3939 × 2.8%
= 1.103%
The interest tax shield from Summit Builders' debt, given a debt-equity ratio of 0.65, the interest rate of 7%, and the tax rate of 40%, lowers its WACC by 1.82%.
The Interest Tax Shield from debt is the reduction in tax expense achieved by offsetting interest expenses on debt against taxable income. The formula for calculating interest tax shield is Interest Paid * Tax Rate.
In the context of this question, the interest paid can be calculated as the product of the debt-equity ratio and the interest rate on the debt. Using the provided information, the calculation would be as follows:
So, the interest tax shield from Summit's debt lowers its Weighted Average Cost of Capital (WACC) by 1.82%.
#SPJ2
By circumference we can safely assume that the figure is a circle.Assuming that the given is radius, you are given the radius of a circle of 59inches. You are asked to find the circumference of the figure. The equation forthe circumference of a circle is C=2*pi*r.
C=2*pi*r
C = 2*3.723*59 inches
C = 370.71 inches
Th circumference of a circle is 370.71 inches.
To correct the circular reference in the balance equation for cell i5, use the formula =Total Due - Down Payment.
The circular reference in the balance equation for cell i5 can be corrected by using the formula: =Total Due - Down Payment. This will ensure that the balance is calculated correctly as the difference between the total due and the down payment.
To fix the circular reference, follow these steps:
This will update the balance in cell i5 to reflect the correct value.
#SPJ12
b. larger orders,
c. new accounts,
d. multiple purchases
Answer:
Explanation:
A