If a Subsidy (Going to Consumers)on a Good Is Eliminated

question 134

Multiple Choice

If a subsidy (going to consumers) on a good is eliminated this would

• A)move its demand curve to the right.
• B)move its demand curve to the left.
• C)cause a movement along the demand curve to a (higher price, lower quantity)point.
• D)cause a movement along the demand curve to a (lower price, higher quantity)point.

Understand the principles and methods for calculating days' sales in inventory.

Comprehend the components and special considerations in determining merchandise inventory.

Learn how to calculate the cost of goods sold and ending inventory using the LIFO and FIFO inventory valuation methods.

Identify the internal controls necessary for accurate physical inventory counting.

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Definitions:

Deadweight Losses

The loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved, leading to a net loss in societal welfare.

Incentives

Motivational factors or mechanisms that encourage individuals or groups to behave in a certain way or to take specific actions.

Lump-Sum Taxes

Taxes that are the same amount for everyone, regardless of the taxpayer’s income level or ability to pay.

Marginal Tax Rates

The percentage of tax applied to the last dollar earned, indicating the fraction of any additional income that will be taken in taxes.