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Question : 8.5   Integrative Questions 1) The phrase “tax incidence” refers to A) how : 1226570

Economics

 

8.5   Integrative Questions

 

1) The phrase “tax incidence” refers to

A) how easy it is to evade the tax.

B) how taxes redistribute income.

C) the degree of progressiveness or regressiveness of the tax.

D) who actually bears the burden of paying the tax.

E) how much the government collects in revenue from a tax.

 

2) If the demand curve for hamburgers is downward sloping and the supply curve for hamburgers is upward sloping, then a tax imposed on hamburgers ________ the price paid by buyers and ________ the price received by sellers.

A) raises; raises

B) raises; lowers

C) lowers; raises

D) lowers; lowers

E) does not change; does not change

3) We can see the inefficiencies created by a sales tax because

A) a deadweight loss occurs.

B) the tax creates an excess burden.

C) at the quantity produced, marginal benefit equals marginal cost.

D) Both answers A and B are correct.

E) Both answers B and C are correct.

 

4) If neither the demand nor the supply for goods or labor is perfectly inelastic, then a sales tax on a good ________ a deadweight loss and an income tax ________ a deadweight loss.

A) creates; creates

B) creates; does not create

C) does not create; create

D) does not create; does not create

E) might create; might create

 

5) Which of the following is true?

i.A tax on buyers has the same effect as the same sized tax on sellers.

ii.The more elastic the demand, the larger is the share of the tax paid by the buyers.

iii.The U.S. income tax is regressive.

A) Only i

B) Only ii

C) Only iii

D) ii and iii

E) i and ii

6) Which of the following is true?

i.If supply is perfectly inelastic, the tax creates no deadweight loss.

ii.The elasticities of supply and demand, not Congress, determine who pays the income tax.

iii.A tax is progressive if the average tax rate falls with income.

A) Only i

B) Only ii

C) Only iii

D) ii and iii

E) i and ii

 

7) Which of the following is true?

i.If demand is perfectly elastic, the tax creates no deadweight loss.

ii.The more elastic the supply of a factor of production, the greater is the deadweight loss from an income tax.

iii.A tax is regressive if the average tax rate rises with income.

A) Only i

B) Only ii

C) Only iii

D) ii and iii

E) i and ii

 

8) A sales tax on cigarettes would likely decrease the quantity demanded by a smaller amount

A) for smokers who view cigarettes as a necessity.

B) for smokers who are not addicted.

C) for smokers with smaller incomes.

D) the longer the time elapsed.

E) for smokers who view cigarettes as a luxury.

9) The figure above shows the impact of an income tax. The deadweight loss created by the income tax equals area

A) bce.

B) fed.

C) acf.

D) feba.

E) The question errs because an income tax does not create a deadweight loss.

 

10) The figure above shows the impact of an income tax. The revenue collected by the government equals area

A) bce.

B) feba.

C) fed.

D) acf.

E) None of the above answers is correct.

11) The imposition of ________ shifts the labor demand curve downward.

A) a sales tax

B) an income

C) a social security tax on workers

D) a social security tax on employers

E) Both answers C and D are correct.

 

12)  ________ tax is progressive if the ________.

A) An income; average tax rate is constant as income increases

B) An income; average tax rate increases with income

C) Any; average tax rate is constant as income increases

D) Any; average tax rate decreases as income increases

E) A social security; tax is imposed on employers rather than workers

 

13) To levy a tax based on the benefits principle to pay for a bridge, the government

A) would impose an income tax instead of a social security tax on workers.

B) would impose a social security tax on workers instead of an income tax.

C) needs to know each person’s benefit from the bridge.

D) needs to be able to calculate the deadweight loss of a tax.

E) cannot impose the tax on anyone who uses the bridge.

14) Which of the following taxes guarantees vertical equity?

i)income tax

ii)social security tax on workers

iii)social security tax on employers

A) i only

B) i and ii

C) ii and iii

D) iii only

E) None of the above taxes guarantees vertical equity.

 

 

 

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July 1, 2023
    

 

SHORT ANSWER.

Write the word or phrase that best completes each statement or answers the question. 70)

Due to unprecedented growth during the year Denise's Flowers decided to use some of its surplus cash to increase the size of several inventory order quantities that had been previously determined using an EOQ model.

 

Required:

 

For each of the following items tell whether the action caused an increase, a decrease, or no change to the EOQ.

 

a.average inventory

b.cost of goods sold

c.number of orders per year

d.total annual carrying costs

e.total annual carrying and ordering costs

f.total annual ordering costs 70)

_____________

71)

Berryton Products' only product has an annual demand of 1,000 units. The cost of placing an order is $20 and the cost of carrying one unit in inventory for one year is $10.

 

Required:

 

Determine the economic order quantity. 71)

_____________

72)

Bottle It has one particular product that has an annual demand of 1,000 units. Total manufacturing costs per unit total $40 and set-up costs per batch are $15. Direct material ordering costs for the product total $10 per order. Currently the carrying costs per unit are 25 percent of manufacturing costs.

 

Required:

Determine the economic manufacturing (order) quantity. 72)

_____________

73)

The only product of a company has an annual demand of 2,000 units. The cost of placing an order is $40

and the cost of carrying one unit in inventory for one year is $16.

 

Required:

Determine the economic order quantity.

 73)

_____________

74)

The annual demand for red, medium polo shirts, for Clothes, Inc. is 25,000 units. The cost of placing an order is $80, and the cost of carrying one unit in inventory for one year is $25.

 

Required:

 

a.Use the economic order quantity model to determine the optimal order size.

b.Determine the reorder point assuming a lead time of 10 days, and a work year of 250 days.

c.Assuming the maximum lead time is 20 days and the maximum daily demand is 125 units, determine the safety stock required to prevent stockouts. 74)

_____________

75)

An inventory item of XYZ Manufacturing has an average daily demand of 10 units with a maximum daily demand of 12 units. The economic order quantity is 200 units. The reorder point is 50 units. Safety stocks are set at 94 units.

 

Required:

 

a.Determine the inventory level at the time of reordering.

b.Determine the purchase order lead time.

d.Determine the maximum purchase order lead time that the company can experience before it has a stockout. 75)

_____________

76)

Ralph was in the process of completing the quarterly planning for the purchasing department when a

major computer malfunction lost most of his data. For direct material XXX he was able to recover the

following:

 

Average inventory level of XXX200

Orders per year40

Average daily demand48

Working days per year250

Annual ordering costs$4,000

Annual carrying costs$6,000

 

Ralph purchases at the EOQ quantity level.

 

Required:

Determine the annual demand, the cost of placing an order, the annual carrying cost of one unit, and the economic order quantity.

 

 76)

_____________

77)

The IBP Grocery orders most of its items in lot sizes of 10 units. Average annual demand per side of beef is 720 units per year. Ordering costs are $25 per order with an average purchasing price of $100. Annual inventory carrying costs are estimated to be 40 percent of the unit cost.

 

Required:

 

a.Determine the economic order quantity.

b.Determine the annual cost savings if the shop changes from an order size of 10 units to the economic order quantity.

c.Since the shelf life is limited the IBP Grocery must keep the inventory moving. Assuming a 360-day year, determine the optimal lot size under each of the following: (1) a 20-day shelf life and (2) a 10-day shelf life. 77)

_____________

78)

For supply item ABC, Andrews Company has been ordering 125 units based on the recommendation of

the salesperson who calls on the company monthly. A new purchasing agent has been hired by the

company who wants to start using the economic-order-quantity method and its supporting decision

elements. She has gathered the following information:

 

Annual demand in units250

Days used per year250

Lead time, in days10

Ordering costs$100

Annual unit carrying costs$20

 

Required:

Determine the EOQ, average inventory, orders per year, average daily demand, reorder point, annual ordering costs, and annual carrying costs.

 78)

_____________

79)

A jeweller orders gems in lot sizes of 1,250 gems. The annual demand for emeralds is 6,250 gems. Ordering costs are $200 per order and carrying costs are $10 per unit annually.

 

Required:

 

a.Determine the economic order quantity.

b.Determine the amount of annual cost savings if the company changes from an order size of 1,250 units to the economic order size.

c.One supplier offers a discount of $2 per unit off the purchase price of orders in lots of 625 units or more. What impact would this have on the EOQ and should the order size be changed? 79)

_____________

80)

The annual demand for a company's product is 3,750 units, and monthly demand varies from 200 to 400 units with the following probability of demand:

 

200 units have a 25 percent probability

300 units have a 50 percent probability

400 units have a 25 percent probability

 

The EOQ model provides an optimal order quantity of 250 units. The opportunity costs of being out of stock are $2 per unit, with a carrying cost of $13 per unit, and the reorder point is 250 units.

 

Required:

 

a.Prepare a table showing stockouts, expected stockout costs, related carrying costs, and total costs, at each level of demand if the selected safety stocks are: 0, 50, 100 and 150.

b.What is the best level of safety stock to carry? 80)

_____________

 

 

default image
July 1, 2023
    

 

SHORT ANSWER.

Write the word or phrase that best completes each statement or answers the question. 70)

Due to unprecedented growth during the year Denise's Flowers decided to use some of its surplus cash to increase the size of several inventory order quantities that had been previously determined using an EOQ model.

 

Required:

 

For each of the following items tell whether the action caused an increase, a decrease, or no change to the EOQ.

 

a.average inventory

b.cost of goods sold

c.number of orders per year

d.total annual carrying costs

e.total annual carrying and ordering costs

f.total annual ordering costs 70)

_____________

71)

Berryton Products' only product has an annual demand of 1,000 units. The cost of placing an order is $20 and the cost of carrying one unit in inventory for one year is $10.

 

Required:

 

Determine the economic order quantity. 71)

_____________

72)

Bottle It has one particular product that has an annual demand of 1,000 units. Total manufacturing costs per unit total $40 and set-up costs per batch are $15. Direct material ordering costs for the product total $10 per order. Currently the carrying costs per unit are 25 percent of manufacturing costs.

 

Required:

Determine the economic manufacturing (order) quantity. 72)

_____________

73)

The only product of a company has an annual demand of 2,000 units. The cost of placing an order is $40

and the cost of carrying one unit in inventory for one year is $16.

 

Required:

Determine the economic order quantity.

 73)

_____________

74)

The annual demand for red, medium polo shirts, for Clothes, Inc. is 25,000 units. The cost of placing an order is $80, and the cost of carrying one unit in inventory for one year is $25.

 

Required:

 

a.Use the economic order quantity model to determine the optimal order size.

b.Determine the reorder point assuming a lead time of 10 days, and a work year of 250 days.

c.Assuming the maximum lead time is 20 days and the maximum daily demand is 125 units, determine the safety stock required to prevent stockouts. 74)

_____________

75)

An inventory item of XYZ Manufacturing has an average daily demand of 10 units with a maximum daily demand of 12 units. The economic order quantity is 200 units. The reorder point is 50 units. Safety stocks are set at 94 units.

 

Required:

 

a.Determine the inventory level at the time of reordering.

b.Determine the purchase order lead time.

d.Determine the maximum purchase order lead time that the company can experience before it has a stockout. 75)

_____________

76)

Ralph was in the process of completing the quarterly planning for the purchasing department when a

major computer malfunction lost most of his data. For direct material XXX he was able to recover the

following:

 

Average inventory level of XXX200

Orders per year40

Average daily demand48

Working days per year250

Annual ordering costs$4,000

Annual carrying costs$6,000

 

Ralph purchases at the EOQ quantity level.

 

Required:

Determine the annual demand, the cost of placing an order, the annual carrying cost of one unit, and the economic order quantity.

 

 76)

_____________

77)

The IBP Grocery orders most of its items in lot sizes of 10 units. Average annual demand per side of beef is 720 units per year. Ordering costs are $25 per order with an average purchasing price of $100. Annual inventory carrying costs are estimated to be 40 percent of the unit cost.

 

Required:

 

a.Determine the economic order quantity.

b.Determine the annual cost savings if the shop changes from an order size of 10 units to the economic order quantity.

c.Since the shelf life is limited the IBP Grocery must keep the inventory moving. Assuming a 360-day year, determine the optimal lot size under each of the following: (1) a 20-day shelf life and (2) a 10-day shelf life. 77)

_____________

78)

For supply item ABC, Andrews Company has been ordering 125 units based on the recommendation of

the salesperson who calls on the company monthly. A new purchasing agent has been hired by the

company who wants to start using the economic-order-quantity method and its supporting decision

elements. She has gathered the following information:

 

Annual demand in units250

Days used per year250

Lead time, in days10

Ordering costs$100

Annual unit carrying costs$20

 

Required:

Determine the EOQ, average inventory, orders per year, average daily demand, reorder point, annual ordering costs, and annual carrying costs.

 78)

_____________

79)

A jeweller orders gems in lot sizes of 1,250 gems. The annual demand for emeralds is 6,250 gems. Ordering costs are $200 per order and carrying costs are $10 per unit annually.

 

Required:

 

a.Determine the economic order quantity.

b.Determine the amount of annual cost savings if the company changes from an order size of 1,250 units to the economic order size.

c.One supplier offers a discount of $2 per unit off the purchase price of orders in lots of 625 units or more. What impact would this have on the EOQ and should the order size be changed? 79)

_____________

80)

The annual demand for a company's product is 3,750 units, and monthly demand varies from 200 to 400 units with the following probability of demand:

 

200 units have a 25 percent probability

300 units have a 50 percent probability

400 units have a 25 percent probability

 

The EOQ model provides an optimal order quantity of 250 units. The opportunity costs of being out of stock are $2 per unit, with a carrying cost of $13 per unit, and the reorder point is 250 units.

 

Required:

 

a.Prepare a table showing stockouts, expected stockout costs, related carrying costs, and total costs, at each level of demand if the selected safety stocks are: 0, 50, 100 and 150.

b.What is the best level of safety stock to carry? 80)

_____________

 

 

default image
July 1, 2023
    

 

SHORT ANSWER.

Write the word or phrase that best completes each statement or answers the question. 70)

Due to unprecedented growth during the year Denise's Flowers decided to use some of its surplus cash to increase the size of several inventory order quantities that had been previously determined using an EOQ model.

 

Required:

 

For each of the following items tell whether the action caused an increase, a decrease, or no change to the EOQ.

 

a.average inventory

b.cost of goods sold

c.number of orders per year

d.total annual carrying costs

e.total annual carrying and ordering costs

f.total annual ordering costs 70)

_____________

71)

Berryton Products' only product has an annual demand of 1,000 units. The cost of placing an order is $20 and the cost of carrying one unit in inventory for one year is $10.

 

Required:

 

Determine the economic order quantity. 71)

_____________

72)

Bottle It has one particular product that has an annual demand of 1,000 units. Total manufacturing costs per unit total $40 and set-up costs per batch are $15. Direct material ordering costs for the product total $10 per order. Currently the carrying costs per unit are 25 percent of manufacturing costs.

 

Required:

Determine the economic manufacturing (order) quantity. 72)

_____________

73)

The only product of a company has an annual demand of 2,000 units. The cost of placing an order is $40

and the cost of carrying one unit in inventory for one year is $16.

 

Required:

Determine the economic order quantity.

 73)

_____________

74)

The annual demand for red, medium polo shirts, for Clothes, Inc. is 25,000 units. The cost of placing an order is $80, and the cost of carrying one unit in inventory for one year is $25.

 

Required:

 

a.Use the economic order quantity model to determine the optimal order size.

b.Determine the reorder point assuming a lead time of 10 days, and a work year of 250 days.

c.Assuming the maximum lead time is 20 days and the maximum daily demand is 125 units, determine the safety stock required to prevent stockouts. 74)

_____________

75)

An inventory item of XYZ Manufacturing has an average daily demand of 10 units with a maximum daily demand of 12 units. The economic order quantity is 200 units. The reorder point is 50 units. Safety stocks are set at 94 units.

 

Required:

 

a.Determine the inventory level at the time of reordering.

b.Determine the purchase order lead time.

d.Determine the maximum purchase order lead time that the company can experience before it has a stockout. 75)

_____________

76)

Ralph was in the process of completing the quarterly planning for the purchasing department when a

major computer malfunction lost most of his data. For direct material XXX he was able to recover the

following:

 

Average inventory level of XXX200

Orders per year40

Average daily demand48

Working days per year250

Annual ordering costs$4,000

Annual carrying costs$6,000

 

Ralph purchases at the EOQ quantity level.

 

Required:

Determine the annual demand, the cost of placing an order, the annual carrying cost of one unit, and the economic order quantity.

 

 76)

_____________

77)

The IBP Grocery orders most of its items in lot sizes of 10 units. Average annual demand per side of beef is 720 units per year. Ordering costs are $25 per order with an average purchasing price of $100. Annual inventory carrying costs are estimated to be 40 percent of the unit cost.

 

Required:

 

a.Determine the economic order quantity.

b.Determine the annual cost savings if the shop changes from an order size of 10 units to the economic order quantity.

c.Since the shelf life is limited the IBP Grocery must keep the inventory moving. Assuming a 360-day year, determine the optimal lot size under each of the following: (1) a 20-day shelf life and (2) a 10-day shelf life. 77)

_____________

78)

For supply item ABC, Andrews Company has been ordering 125 units based on the recommendation of

the salesperson who calls on the company monthly. A new purchasing agent has been hired by the

company who wants to start using the economic-order-quantity method and its supporting decision

elements. She has gathered the following information:

 

Annual demand in units250

Days used per year250

Lead time, in days10

Ordering costs$100

Annual unit carrying costs$20

 

Required:

Determine the EOQ, average inventory, orders per year, average daily demand, reorder point, annual ordering costs, and annual carrying costs.

 78)

_____________

79)

A jeweller orders gems in lot sizes of 1,250 gems. The annual demand for emeralds is 6,250 gems. Ordering costs are $200 per order and carrying costs are $10 per unit annually.

 

Required:

 

a.Determine the economic order quantity.

b.Determine the amount of annual cost savings if the company changes from an order size of 1,250 units to the economic order size.

c.One supplier offers a discount of $2 per unit off the purchase price of orders in lots of 625 units or more. What impact would this have on the EOQ and should the order size be changed? 79)

_____________

80)

The annual demand for a company's product is 3,750 units, and monthly demand varies from 200 to 400 units with the following probability of demand:

 

200 units have a 25 percent probability

300 units have a 50 percent probability

400 units have a 25 percent probability

 

The EOQ model provides an optimal order quantity of 250 units. The opportunity costs of being out of stock are $2 per unit, with a carrying cost of $13 per unit, and the reorder point is 250 units.

 

Required:

 

a.Prepare a table showing stockouts, expected stockout costs, related carrying costs, and total costs, at each level of demand if the selected safety stocks are: 0, 50, 100 and 150.

b.What is the best level of safety stock to carry? 80)

_____________

 

 

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Your service is excellent! Convenient and not expensive. Thanks for that!

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customer #10923
Psychology, 4 pages
Essay (any type)
August 5, 2021
    

If you have problems with time management, just like me, you need to cooperate with Doctor My Essay. Once you registered and made the order, you understand how easier it makes your life! Everything is online: ordering, communication… You can control the process everywhere and be sure that an expert will provide a high-level paper.

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customer #17823
Business, 8 pages

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

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Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

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Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

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Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

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Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

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