Describe ira account

Assignment Help Microeconomics
Reference no: EM131442159

Question: Assume that contributions to an IRA account in excess of 10 percent of income are tax deductible. Use a two-period diagram to show the budget constraint. Explain why this form of IRA account is more likely to increase savings than the traditional form.

Reference no: EM131442159

Questions Cloud

Who is responsible for the content frames for updates : Definition of which platform or platforms are to be used. The types of content to be used on each. Who is responsible for the content and time frames for updates?
Describe the process for selection of the best proposal : You are to create a complete request for proposal (RFP) for a research project. This is concerning the central valley market from Modesto to Bakersfield. You want a research project that randomly surveys the whole market region. The following are ..
Six rules of thumbs for doing business across cultures : What are the six rules of thumbs for doing business across cultures?
What are the defining characteristics of apples industry : What are the defining characteristics of Apple's industry? What are the competitive weapons that rivals are using to try to outmaneuver one another in the marketplace?
Describe ira account : Assume that contributions to an IRA account in excess of 10 percent of income are tax deductible. Use a two-period diagram to show the budget constraint. Explain why this form of IRA account is more likely to increase savings than the traditional ..
What features drew you to this specific campaign : Choose a company and research how they are using social media to build their brand in a unique and interesting way. Present your findings in an original, substantive post. Consider the essential social media marketing features this company uses an..
Calculate the payback period : Part (a): Calculate the payback period. Part (b): Calculate the machine's internal rate of return. Part (c): Calculate the machine's net present value using a discount rate of 10%. Part (d): Assuming Corn Doggy Inc.'s cost of capital is 10%, is the i..
Disguise underlying problems : What does it mean to say that higher inventory levels often disguise underlying problems? What types of problems does this indicate?
Discuss the important points you have learn about marketing : Marketing is a dynamic and exciting science. This course was designed to give you an opportunity to experience an overview of the many disciplines/ areas of this science. For our final discussion, examine those marketing areas you found most inter..

Reviews

Write a Review

Microeconomics Questions & Answers

  What is the amount of taxes the company paid

Assume that the company has taken full advantage of the Tax Code's carry-back, carry-forward provisions, and assume that the current provisions were applicable in 2005. What is the amount of taxes the company paid in 2008?

  Change in compensation is reason for the increased profit

Recently, the owner of a Trader Joe’s franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $60,000 and her store made $125,000 in profits (not counting payment to her top manager). She suspected t..

  What change in government purchases and taxes

Suppose instead that the goverment wished to raise GDP to 7,100, but it was unwilling to run a surplus or deficit. Therefore the change in government purchases would have to be matched by and equal change in taxes. What change in government purcha..

  A decrease in material costs

For each of the four scenarios below, determine how each event would affect our firm's marginal, average, and average variable cost curves. Consider each situation independently. Describe in detail. a. An increase in employee wagesb. A decrease in ma..

  What is the median-voter model

What is the median-voter model and what are two implications from it and evaluate: "A tax system in which those with higher incomes pay higher amounts of taxes is progressive."

  Explain upward sloping supply curve

since the firm faces an upward sloping curve, it will not pick E* (equilibrium level of employment) How will it decide how much labor to employ, and how will this equilibrium level of employment (E**) compare with E*? Explain the reason for the di..

  What would the purchase price

A company has issued 10-year bonds, with a face value of $1,000,000, in $1,000 units. Interest at 8% is paid quarterly. If an investor desires to earn 12% nominal interest (compounded quarterly) on $10,000 worth of these bonds, what would the pur..

  What is a reason for diseconomies of scale

The Big Box Company is a firm in a perfectly competitive industry. The average rate of return on capital in this industry is 10%. Thus, if the Big Box Company earns a 10% rate of return.A perfectly competitive firm is charging $7 and selling 1500 u..

  Colossal coffee roasters

Colossal Coffee Roasters

  Requires complete understanding of interactions

Requires complete understanding of interactions between production and profit maximization.  Be careful with the IF-THEN statement.  If a competitive firm minimizes its costs of production subject to output, it then maximizes economic profit.  True o..

  Recent study found that an increase in the federal tax

A recent study found that an increase in the Federal tax on beer (and thus an increase in the price of beer) would reduce the demand for marijuana. We can conclude that:

  What do you mean by the term market equilibrium and why is

what are the differences between real and nominal rates? explain why this is important to induce action on the part of

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd