You have been asked to comment on a proposal to lower the Corporate Average Fuel Economy (CAFÉ) Standards by 30%.
1. Yes, I will support the proposal to lower the corporate average fuel economy (CAFE) standards by 30% as CAFE makes it obligatory for automobile company to provide higher fuel efficiency to the customer, it simply means lower cost of driving vehicles for customer which will promote more and more self owned vehicles by individuals to be used by them for their daily commute and demotivates them to use public transport for their daily commutation purpose which will only increase pollution in the country. Further it also not gives any economic benefit to consumer directly as automobile companies has to use upgraded technologies to provide such fuel efficiency to consumers and they will ultimately recover that increased cost from consumer itself. This CAFE serves no benefit to the society and hence proposal to lower fuel economy will by OK.
2. Economic impacts of such a move will be first the additional cost, incurred by the automobile company on customizing the vehicle so that it gives higher fuel economy, will get reduced as a result of which the additional burden being put on customer will get reduced which will ultimately lead to reduction of prices of vehicle. Further day to day expenses of consumer on fuel may increase due to lower fuel economy and a resultant higher fuel bill.
3. Yes, I would support 30% increase in taxes on gasoline rather than a 30% decrease in the CAFE standard as increase in taxes on gasoline will make fuel expensive thus demotivating people to use their own vehicles for day to day commutation and people will be encouraged to use public transport . Also if someone still choose its own vehicle then he has to pay more fuel price , which is nothing but higher taxes which can be used by government for it's moves towards making society environment friendly.
You have been asked to comment on a proposal to lower the Corporate Average Fuel Economy...
Would you support a 30% increase in taxes on gasoline rather than a 30% decrease in the CAFÉ standard? Why or why not? (Be specific and justify).
ou just won a contest and have been appointed City of New York Tax Commissioner (you might be asking, why did I enter such a contest? :)). Your primary goal is two-fold: raise revenue and make the tax code more efficient. Since we are in the chapter on elasticity, you are aware that increasing prices (which increasing taxes do) can both increase and decrease revenue, and that lowering prices/taxes can both increase and decrease revenue. You have to decide which...
s an employee of a company that is considering investing in a foreign economy, you have been asked to research a country and make a presentation to your colleagues about an area of economic concern in the country. Select a country in Africa, Asia, or Latin America to research. Select 1 of the following economic concerns to research: Gross Domestic Product (GDP) Unemployment Inflation Quantities of specific goods and services Exports and imports Research data sets for the one economic...
You have been asked to assess the expected financial impact of each of the following proposals to improve the profitability of credit sales made by your company. Each proposal is independent of the other. Answer all questions. Showing your work may earn you partial credit. Proposal #1 would extend trade credit to some customers that previously have been denied credit because they were considered poor risks. Sales are projected to increase by $200,000 per year if credit is extended to...
You have been asked to give a presentation to your company’s board of directors on the treatment of data as a corporate asset, similar to the treatment of cash, equipment, and facilities. (a) Justify to a skeptical board member why data should be regarded as valuable company assets. (b) Identify and briefly describe two distinct threats that could reduce or destroy the value of data. (c) Recommend measures that the company can take to protect against each of the threats...
You have been asked to assess the expected financial impact of each of the following proposals to improve the profitability of credit sales made by your company. Each proposal is independent of the other. Answer all questions. Showing your work may earn you partial credit. Proposal #1 would extend trade credit to some customers that previously have been denied credit because they were considered poor risks. Sales are projected to increase by $120,000 per year if credit is extended to...
You have been asked to assess the expected financial impact of each of the following proposals to improve the profitability of credit sales made by your company. Each proposal is independent of the other. Answer all questions. Showing your work may earn you partial credit. Proposal #1 would extend trade credit to some customers that previously have been denied credit because they were considered poor risks. Sales are projected to increase by $200,000 per year if credit is extended to...
You have been asked to assess the expected financial impact of each of the following proposals to improve the profitability of credit sales made by your company. Each proposal is independent of the other. Answer all questions. Type your answers in the table and submit this worksheet. Showing your work may earn you partial credit. If you wish to show your work, please do so under each question below the table. Your Answers: Proposal #1 1 2 3 4 5...
BUSI 320 Comprehensive Problem 2 Spring 2019 You have been asked to assess the expected financial impact of each of the following proposals to improve the profitability of credit sales made by your company. Each proposal is independent of the other. Answer all questions. Showing your work may earn you partial credit. Proposal #1 would extend trade credit to some customers that previously have been denied credit because they were considered poor risks. Sales are projected to increase by $120,000...
BUSI 320 Comprehensive Problem 2 Spring 2019 You have been asked to assess the expected financial impact of each of the following proposals to improve the profitability of credit sales made by your company. Each proposal is independent of the other. Answer all questions. Showing your work may earn you partial credit. Proposal #1 would extend trade credit to some customers that previously have been denied credit because they were considered poor risks. Sales are projected to increase by $120,000...