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The income tax system in a country requires each citizen to pay 10% of income on earnings up to $40,000, and then pay 20% on any earnings over $40,000. If an individual has an income of $92350, then what is his average tax rate, in percentage terms?
Suppose that the demand for labor in an economy is Ld = 100 10W, where W = wage in dollars per hour and L = number of workers. The labor supply of native workers is 50 million, and it is perfectly inelastic. Suppose that this economy experiences a..
A local bank advertised the following information: interest 6.89% - effective annual yield 7.128% . no mention was made of the interest period on the advertisement. Can you figure out the compounding scheme used by the bank
Brad and Angelina are married with kids. Suppose Brad's at-home productivity as a parent is $25 and Angelina's is $40. a. Who has an absolute advantage in the home How do you know b. If brad works in the labor market, he can earn a wage of $500p..
The division's revenue for the year is $75 million. c. On March 31, you decide to stop throwing away $50 a month on convenience store nachos. You buy $200 worth of equipment, cornmeal, and cheese and make your own nachos for the rest of the year.
The payoff depicts service competition between two hospitals in a southwestern city. (Each payoff represents profit in millions of dollars) Hospital B's Service Basic All-Purpose Speciality Hospital A's Basic 5,7 5,4 12,6 services All-Purpose 4,5 ..
Public sentiment now changes such that depositors cut their cash holding in half and deposit the other half in time deposit accounts. The reserve requirement on DDs remains 25%, on TDs it remains zero, “m” remains 0, and banks continue to hold no ex..
A firm has standard shaped costs where the minimum of AVC is $15 at a quantity of 9 and the minimum of ATC is $45 at a quantity of 15. The fixed cost is $345. Draw a picture of the MC, ATC, and AVC for this firm specifically labeling the values fo..
A man wishes to set aside some money for his daughter's college education. His goal is to have a bank savings account containing an amount equivalent to $20,000 in today's dollars at the girl's 18th birthday. The estimated inflation rate is 8%.
A firm sells its product in a perfectly competitive market where other firms charge a price of $130 per unit. The firm's total costs are C(Q) = 40 + 10Q + 2Q2. a. How much output should the firm produce in the short run?units
At its current level of production, a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces and faces an average total cost of $10. At the market price of $12.50 per unit, the firm's marginal cost curve.
On april 20, 2010 an oil drilling platform owned by British Petroleum exploded in the Gulf of Mexico, causing oil to leak into the gulf at estimates od 1.5 to 2.5 million gallons per day for well over two months. Due to oil spill, the government c..
A green algae, can produce hydrogen when temporarily deprived of sulfur for up to 2 days at a time. A company needs to purchase equipment costing $3.4 million. If the company wants to earn a rate of return of 20% per year and recover its investmen..
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