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Suppose the real rate of growth of wages subject to Social Security taxes is expected to average 1% per year during the next 40 years. Assume that the Social Security tax rate remains constant, and prove that the average return on Social Security taxes paid into the Social Security trust fund will also be 1%. Why can workers with high incomes expect negative returns on their Social Security taxes during this period?
A United State corporation CTM borrows $1,500,000 at LIBOR + 125bp p.a. on a 6M rollover basis from a London bank. If 6M LIBOR is 4 1/2%
Explain how do you plan to use this while making decisions about public expenditures.
The farmer initially grows 1,057 acres of wheat and 0 acres of corn. Suppose the price of corn increases by $102 per acre harvested and how much does the farmer's revenue change by if she continues to grow wheat even after the price of corn increas..
Suppose the following cost functions of a perfectly competitive company? Compute the firms profit or loss, should firm shut down if loss?
What were some of causes of stagflation of 1973 and 1979? In what ways were these episodes of stagflation different from great depression of the 1930s?
In 1990s, Chrysler Company placed nearly all decisions about the development of a new vehicle in the hands of a single, cross functional product team.
As across many types of technologies that could be useful. However, I am unable to pinpoint one specific technology.
The own price elasticity of demand for Kodak film was -2.0 and the market elasticity of demand was -1.75. Suppose that in the 1990s, the average retail price of a roll of Kodak film was $6.95 and that Kodak's marginal cost was $3.475 per roll.
For a developing country to grow, it needs capital. The major source of capital in most countries is domestic saving, but the goal of stimulating domestic saving usually is in conflict with government policies aimed at reducing inequality in the d..
Intra-industry trade comprise countries exporting and importing the same or very similar goods. Why would countries export and import the same or similar products.
Decide what sports were like NFL before the introduction of the salary cap?
Give an example of a fairly major purchasing decision you've made in your lifetime. How did you justify the purchase.
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