Determine price of the land parcel

Assignment Help Managerial Economics
Reference no: EM1372035

Assume that the current market rate of interest is 10%. The market rent on a parcel of land is $6,000 per year. A 10% land tax is imposed. As a result of the tax, the price of the land parcel:

falls from $60,000 to $30,000.
increases from $30,000 to $60,000.
falls 10 percent.
falls 20 percent.

According to the Harberger model of the incidence of the corporate income tax, the tax:

reduces the return to capital in the corporate sector of the economy only.
reduces the return to capital in all uses.
has no effect on the return to capital.
increases the return to capital.

If corporations maximize profit, a corporate income tax:

has no affect on the profit-maximizing output in the short run.
reduces the profit, maximizing output in the short run.
increase the profit, maximizing output in the short run.
increases the supply of corporate output in the short run.

Assuming that corporations maximize profits and investors seek to maximize the return to their investments, the long-run impact of a corporate income tax is to:

reduce the incomes of corporate shareholders only.
reduce the incomes of workers only.
reduce the incomes of all investors.
increase the price of both corporate and non-corporate goods.Suppose that the current market rate of interest is 10 percent. The market rent on a parcel of land is $6,000 per year. A 10-percent land tax is imposed. As a result of the tax, the price of the land parcel:

falls from $60,000 to $30,000.
increases from $30,000 to $60,000.
falls 10 percent.
falls 20 percent.

According to the Harberger model of the incidence of the corporate income tax, the tax:

reduces the return to capital in the corporate sector of the economy only.
reduces the return to capital in all uses.
has no effect on the return to capital.
increases the return to capital.

If corporations maximize profit, a corporate income tax:

has no affect on the profit-maximizing output in the short run.
reduces the profit, maximizing output in the short run.
increase the profit, maximizing output in the short run.
increases the supply of corporate output in the short run.

Assuming that corporations maximize profits and investors seek to maximize the return to their investments, the long-run impact of a corporate income tax is to:

reduce the incomes of corporate shareholders only.
reduce the incomes of workers only.
reduce the incomes of all investors.
increase the price of both corporate and non-corporate goods.

Reference no: EM1372035

Questions Cloud

Determining a market structure by concentration ratio : An industry has 20 companies and a concentration ratio of 30 percent. If you were in this industry and there was an increased demand for the product that pushed up price of the goods,
Write a enquiry plan and prepare report of enquiry activity : Write a Enquiry Plan - What is your enquiry question about and why is it important to study this specific issue/debate/problem?
Sketch diagram displaying how message-application-layer : Sketch a diagram displaying how message gets from Alice's host to Bob's host. Ensure to list series of application-layer protocols which are used to move message between two hosts.
Various family patterns and structures : Discuss the various family patterns and structures which are economic based focusing on the functioning of the family comparing large extended families which are nomadic, agrarian, or rural with smaller families which are urbanized.
Determine price of the land parcel : Assume that the current market rate of interest is 10%. The market rent on a parcel of land is $6,000 per year. A 10% land tax is imposed. As a result of the tax,
Human services-faith-adulthood and practice : Summarize in your own words what the textbook (Robert S. Feldman) says about one of the following topics: forming loving relationships, choosing a career, or having children. Be sure to integrate a Christian perspective into your posting.
Write down java console application to add new student : Write down java console application presents the following menu. Add new student and scores in Biology, Physics and chemistry Search for a given student.
Pros and cons of social promotion : Social promotion is the promoting of student from one grade to next even if he or she is failing courses. The rationale for social promotion is that moving students to next grade prevents them from being stigmatized because they're older and bigger..
Voluntary export restraint agreements : Determine what are voluntary export restraint contracts and explain why do some governments force foreign exporters into them instead of just using quotas or tariffs to restrict imports by the same amounts?

Reviews

Write a Review

Managerial Economics Questions & Answers

  Linear programming problem

Linear programming is a mathematical technique used to determine the optimal solutions to certain specific problems.

  Demand, supply and the market equilibrium

The article study for the demand, supply and the market equilibrium has been discussed. The article that has been review was published on August 2012.

  Supply and demand in professional sports

Draw the individual cost curves on one graph: marginal cost, average total cost, average ?xed cost, and average variable cost. Place costs ($) on the y-axis and quantity (Q) on the x-axis.

  Explain whether the firm will make economic profit

Explain whether the firm will make economic profit, In the short run and In the long run.

  Determine the official measure of the deficit

Determine the official measure of the deficit

  Coordination of the activities of a business

The organization and coordination of the activities of a business in order to achieve defined objectives.

  What is the profit maximizing number of gizmo widgets

What is the profit maximizing number of Gizmo Widgets that should be introduced? Be sure to account for the fact that Gizmo Widgets displace other kinds of widgets. Again, be sure you provide a brief explanation of your approach/reasoning.

  Determine autocorrelation function of a rectangular pulse

Prepare the sketch the Fourier transform of a rectangular pulse of amplitude 10 V and width 0.1 second that is centered on the zero time axis. Determine the autocorrelation function of a rectangular pulse.

  Managerial economics assignment

Carry out an analysis from the standpoint of both EMV and expected utility to establish Jeremiah’s best course of action, including a consideration of his bidding strategy with regard to the auction.

  Prepare a marginal cost analysed income statement for 2014

Prepare a Marginal Cost Analysed Income Statement for 2014 from the above data to identify total and individual medical procedure contributions and profits.

  Prepare a marginal cost analysed income statement for 2014

Prepare a Marginal Cost Analysed Income Statement for 2014 from the above data to identify total and individual medical procedure contributions and profits.

  Solve managerial economics questions

MGMT 3306: Solve the assignment problems, 1. Please answer the assignment questions in this docx file and save once you’re satisfied. Assignment 3covers the lectures slides for Week 6.

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