Answer:
The incidence of a tax is determined by which group (buyers or sellers) must actually pay the government. FALSE, the real effect of taxes is measured by the price elasticity of the demand and the supply.
When demand is inelastic and supply is elastic, the burden of a tax falls mainly on producers. FALSE, when the price elasticity of demand is inelastic and the price elasticity of supply is elastic, the burden of tax falls mainly on the consumers.
When demand is elastic and supply is inelastic, the burden of a tax falls mainly on consumers. FALSE, when the price elasticity of demand is elastic and the price elasticity of supply is inelastic, the burden of tax falls mainly on the suppliers.
An excise tax can distort incentives and create missed opportunities for mutually beneficial transactions. TRUE
Answer: option C. side-effect
Externality is an economic term, used to refer the damage or benefit that an individual or community experience, due to the activity of other agents who are pursuing other objective.
For example, when a enterprise burns fuel to produce energy, the increase of CO2 is an externality.
<span>THE EFFICIENT ALLOCATION OF LIMITED RESOURCES MOSTLY BEING FACTORS OF PRODUCTION TO COMPLETE A TASK. SO ALLOCATION EFFICIENCY PLAYS A VITAL ROLE TO ACHIEVE AND BY EQUALIZING CONSUMER SURPLUS AND PRODUCER SURPLUS . IT IS TRUE THAT ALLOCATION EFFICIENCY IS ACHIEVED BY EQUALIZING CONSUMER SURPLUS AND PRODUCER SURPLUS.</span>
Answer; c. $14,000
Explanation
On December 1, rent had been paid for 3 months. At a rate of $7,000 a month this will come to;
= 7,000 * 3
= $21,000
The Prepaid rent account will reduce every month by the rent due for that month. The balance on the Prepaid account as at December 31 will therefore have reduced by one month from December 1.
= 21,000 - 7,000
= $14,000