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weqwewe [10]
4 years ago
10

Suppose social security contributions rise by​ $1 billion while social security benefits also rise by​ $1 billion.​ Further, per

sonal income taxes fall by​ $500 million. As a​ result,
A. disposable income should increase while personal income and national income are unchanged.
B. national​ income, personal​ income, and disposable income should increase.
C. both personal and disposable personal income should increase.
D. personal​ income, disposable personal​ income, and national income remain unchanged.
Business
1 answer:
Nadya [2.5K]4 years ago
8 0

Answer:

The answer will be A

Explanation:

As the social security contributions and benefits remain the same in proportion, personal and national income will remain the same.

As disposable income is defined as personal income-personal taxes, and the personal income taxes fall by 500 million (included in the contibutions), this would mean that the disposable income increases.

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A property is leased for $24,000 per year although market rents are currently $27,500 per year and are expected to increase by 2
zhannawk [14.2K]

Answer:

the present vlaue of the ledased property = $251,298

Explanation:

the free market value in 10 years = ($27,500 x (1 + 2%)¹⁰) / 10% = $335,223

free cash flows year 1 - 9 = $24,000

free cash flow year 10 = $359,223

discoutn rate = 11.5%

using a financial calculator, the present value of the property = $251,298

6 0
3 years ago
Which of the following conditions ensures that excess profits cannot persist in a perfectly competitive market over the long run
konstantin123 [22]

Answer:

Ease of entry into the market

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services.

In the long run, perfect competition make zero economic profit because if firms are making economic profits in the short run , new firms would enter into the industry in the long run. This is made possible because of the ease of entry into the market.

I hope my answer helps you

3 0
4 years ago
You would like to establish a trust fund that would provide annual scholarships of $100,000 forever. How much would you have to
aivan3 [116]

Answer:

$2,222,222.22

Explanation:

The data provided in the question

Annual scholarship provided = $100,000

Guaranteed rate of return = 4.5%

So by considering the above information, the amount i.e deposited today is

= Annual scholarship provided ÷ Guaranteed rate of return

= $100,000 ÷ 4.50%

= $2,222,222.22

By dividing the annual scholarship by the rate of return we can get the deposited amount

8 0
4 years ago
Thomlin Company forecasts that total overhead for the current year will be $11,742,000 with 164,000 total machine hours. Year to
Basile [38]

Answer:

d.$72 per machine hour

Explanation:

Predetermined overhead rate = Budgeted Overheads ÷ Budgeted Activity

therefore,

Predetermined overhead rate = $11,742,000  ÷ 164,000

                                                  = $71.598 or $72

The predetermined overhead rate based on machine hours is $72 per machine hour.

3 0
3 years ago
The United Nation of Zorwaya has strict restrictions on direct investment by foreign enterprises, and it opposes the establishme
max2010maxim [7]

Answer:

These are the options for the question:

A) deregulation  

B) socialism    

C) totalitarian ideologies

D) command economies

And this is the correct answer:

A) deregulation  

Explanation:

According to the information in the question, the nation of Zorwaya is regime where political leadership has tight control over economic matters. The highest authority controls both prices and production (a staple of socialism and planned economies), and opposes most foreign investment, only allowing it after strict scrutiny and tight control.

In this nation, political leadership would oppose deregulation because this would reduce their power over the economy. Deregulation would likely mean easening price controls, allowing production to flow more freely, or lifting restrictions to foreign capital, things that Zorwaya's leaders oppose.

6 0
3 years ago
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