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Q. Consider an employee who does not receive employer-based health insurance and must divide her $700 per week in after-tax income between health insurance and "other goods." Draw this worker's opportunity set if the price of health insurance is $100 per week and the price of "other goods" is $100 for every week. Illustrate On the same graph, how the opportunity set would change if the employer agreed to give this employee $100 worth of health insurance per week under current tax laws also this form of compensation is nontaxable. Would this employee be better or poorer if instead of the health insurance, the employer gave her a $100 per week raise that was taxable at a rate of 25 percent? Explain.
Which of following is equivalent to marginal propensity to consume. If incomes increased by $20,000, government purchases are fixed at $10,000, investment spending is fixed.
In early 1980s, U.S. economic policy was directed toward reducing inflation. Illustrate what would you have expected to observe during this short period of time.
Assume you want to test the null hypothesis that the mean value of the bill in the box is 9 against the alternative that it is less than 9.
Give a detailed explanation about how the engineer's income generation as described above affects GDP and GNP of U.S.
Illustrate what are the levels of income every worker also consumption every worker at the initial period. Remembering that the change in the capital stock is investment less depreciation.
3a wine producer claims that the proportion of its customers who cannot distinguish its product from frozen grape juice
The Chief Financial Officer, Mr. Smith told him it was impractical because it would require the issue of common stock at a cost of 16 percent to finance the purchase. Is the company following a logical approach to using cost of capital?
Should GDP take into account environmental issues, distributional issues also health also welfare issues.
calculate the percentage change from 2001 to 2002 in nominal GDP, real GDP, and the price level. What is the value of the GDP deflator in 2002?
Explain how is the equilibrium level of national income determined in the Keynesian cross model? What are the major limitations of this model.
Why manufacturer guarantees the computer for one year only. The cost of the extended warranty is $150. Analyze this proposition using the concepts you learned in the module on risk analysis.
Which costs would you take into account in making your decision, fixed costs, variable costs or both? Make sure to explain your analysis in the decision that you have to make.
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