Joseph Company Reported the Following Information for the Current Year

question 99

Multiple Choice

Joseph Company reported the following information for the current year: $\begin{array}{llr} \text {Sales } &\$800,000\\ \text { Average operating assets} &\$388,000\\ \text { Desired ROI } &13\%\\ \text { Residual income } &\$11,900\end{array}$
The company's operating income was:

• A) $104,000.
• B) $62,340.
• C) $50,440.
• D) $38,540.

Identify and justify the use of taxes or subsidies to achieve social optimum.

Analyze the impact of externalities on private and social costs and benefits.

Explain the concept of market equilibrium and how it is affected by externalities.

Understand the role of governmental policies in correcting market failures due to externalities.

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Definitions:

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A German philosopher, social scientist, and journalist who co-developed Marxist theory with Karl Marx.

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The condition where a small proportion of a population holds a large percentage of the total wealth of a society, leading to economic inequality.

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The frequency of marriages in a defined population over a specific period, often measured as the number of marriages per 1,000 inhabitants annually.

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A period following the end of the Second World War, characterized by political, social, and economic reconstruction, the beginning of the Cold War, and significant technological and cultural changes.