Explain when state sales tax is imposed for online transactions.
| State Sales Tax |
| If there is a Physical Store, then Sales Tax is imposed on the Customers |
| If there is No Physical Store, then Sales Tax is generally not imposed |
identify and explain what happens when a tax is imposed on the buyer
(1) Briefly explain why deadweight loss exist when a tax is imposed. Why would deadweight loss be lower if the tax is imposed on a good with inelastic demand? [3 Points)
1. An excise tax (sales tax) is imposed on producers of a good. For a given supply curve, the more price elastic the demand for the product, the greater the tax incidence on (the party that pays more portion of tax): Producers Both Consumers Neither
The government raises the sales tax on shirts. The tax is imposed on sellers. As a result, the demand curve for shirts becomes horizontal. supply curve of shirts shifts leftward. demand curve for shirts becomes vertical. supply curve of shirts shifts rightward.
What happens to the gains from trade when a tax is imposed? Choose an industry in which you work or with which you are familiar. How would a tax affect sales, supplier revenue, and consumer buying power in that industry?
When a tax is imposed on the sale of a good, the seller will raise the price of the good by the amount of the tax, and the tax will be paid entirely by the consumer. True False
Sales Tax Transactions Journalize the entries to record the following selected transactions. a. Sold $544,000 of merchandise on account, subject to a sales tax of 8%. The cost of the goods sold was $320,960. If an amount box does not require an entry, leave it blank. b. Paid $41,330 to the state sales tax department for taxes collected If an amount box does not require an entry, leave it blank. BE
In economics, the term "free market" refers to a market where no sales tax is imposed on products sold. O True O False Click to select your answer O Type here to search
Sales Tax Transactions Journalize the entries to record the following selected transactions. a. Sold $429,000 of merchandise on account, subject to a sales tax of 6%. The cost of the goods sold was $253,110. If an amount box does not require an entry, leave it blank. Accounts Receivable Sales Sales Tax Payable Cost of Goods Sold Inventory Feedback (a) Two entries are required: (1) for the sale on account including sales tax (2) for the cost of the goods sold...
You are a state budget analyst. Your state generates revenue by graduated income tax, sales tax on all items and lottery sales. List and explain three other potential revenue sources. Which of the three currently in use would you eliminate or reduce? Explain your reasoning.