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In Taxland, the first $10,000 earned per year is exempt from taxation. Between $10,000.01 and $30,000, the tax rate is 25 percent. Between $30,000.01 and $50,000, it's 30 percent. Above $50,000, it's 35 percent. You're earning $75,000 a year.
a. How much in taxes will you have to pay?
b. What is your average tax rate?
c. What is your marginal tax rate?
If Max receives an unemployment check, would we include that transfer payment from the government in this year's GDP? Why or why not?
cool-aire corporation manufacturers a line of room air conditioners. Its break even sales level is 33,000 units. Sales are approximately normally distributed. Expected sales next year are 40,000 units with a standard deviation of 4,000 units
A company is now licensed to manufacture a patented tool on which the patent has only 7 more years to run. The company makes 7500 copies of the tool each year and pays the inventor $100 per year plus $0.05 per tool produced.
Every student enrolled in Economics 101 must also attend a weekly tutorial. This year there are two sections offered: section A and section B, which meet at the same time in adjoining classrooms and are taught by equally competent instructors. Sec..
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 ..
Suppose the price elasticity of demand for movies by teenagers is 0.2 and that by adults is 2.0. What policy would the movie theater implement to increase total revenue? Explain why senior citizens often obtain special price discounts.
Explain how to quantify the gains
In the face of substantial crowding out, which will be more successful-fiscal or monetary policy?
The market shares below are hypothetical and should not be cited in any paper you write in a future business class. General Motors = 24% Toyota = 20% Ford = 16% Honda = 12% Chrysler = 10% BMW = 7%
What do you understand by a ‘negative externality'? Consider the impacts of a negative externality on resource allocation and the policies which might be used to ‘correct' it.
A golf course operator must decide the green fees (prices) to set on rounds of golf. Daily demand during the week is Pd=36-Qd/10, where Qd is the number of 18-hole rounds and Pd is the price per round.
Suppose that instead of doing $600 damage to one neighbor, Al does $1 damage to 600 neighbors. Are those 600 neighbors as likely to be able to convince him to stop as easily as Marcy can? Explain.
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