In the Absence of Taxes,Janet Would Prefer to Purchase a Large

question 122

Multiple Choice

In the absence of taxes,Janet would prefer to purchase a large sport utility vehicle (SUV) .The government has recently decided to place a $10,000 nuisance tax on SUVs.If Janet decides to purchase a small economy car as a result of the tax,which of the following statements is correct?

• A) Other people who choose to purchase SUVs will incur the cost of the deadweight loss of the tax.
• B) There are no deadweight losses as long as some people still choose to purchase SUVs.
• C) In order to determine the magnitude of the deadweight loss,we must add the revenues from the tax to the loss in Janet's consumer surplus.
• D) Janet is worse off,and her loss of welfare is part of the deadweight loss of the tax.

Explain the concept of insider trading and the legal consequences for those involved.

Identify the legal protections available to investors, including the right to sue for damages due to false or misleading statements.

Understand the exemptions from registration requirements under securities laws.

Comprehend the role and application of blue-sky laws in securities regulation.

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Definitions:

Expectancy Theory

A theory suggesting that the motivation of an individual is affected by the belief in the effectiveness of their effort, the value of the rewards associated with success, and the likelihood that their effort will lead to desired outcomes.

Equity Theory

is a theory of motivation that suggests individuals assess their job satisfaction based on the fairness of the rewards they receive relative to others.

Goal-setting Theory

A framework that suggests specific, challenging goals along with appropriate feedback contribute to higher and better task performance.

Comparable Worth

The concept that jobs of equal value to an organization should receive equal pay, regardless of the gender or minority status of the job holders.