Answer: The labor supply curve for a wealthy individual is usually more elastic than a poor person's labor supply curve
Explanation:
Tax could be described as individuals paying a particular percentage of their income and whatever they use then pay to the government. The aim of the tax being collected is to generate funds internally which could be used in maintaining the economy.
Despite the government attempts to make tax be one-sided, it yields little or no result in favour of the poor as they end up being well tax as same as the rich. Those who are poor make use of services regularly, and most societies have them than those who are already established. The labor supply curve for a wealthy individual is usually more elastic than a poor person's labor supply curve. We would realize that we have more poor people in labour than those who are rich.
Answer:
a would be the answer for the question
Answer:
No, Luz is incorrect. Marta's quantity demanded has decreased, but her demand has stayed the same.
Explanation:
For $15 per book, the quantity demanded was 4 books per month.
When the price increases to $20 per book, the quantity demanded fell to 3 books per month.
This shows a decrease in the quantity demanded. A change in demand occurs when the price is constant and quantity demanded changes because of change in other factors. But here the other factors are constant and the quantity demanded is changing due to a change in price.
So, Luz's statement here is incorrect.
Answer:
c. $74,450
Explanation:
The computation of the Net present value is shown below
= Present value of all yearly cash inflows after applying discount factor + salvage value - initial investment
where,
The Initial investment is $120,000
All yearly cash flows would be
= Annual net operating cash inflows × PVIFA for 6 years at 14%
= $50,000 × 3.8887
= $194,435
Refer to the PVIFA table
Now put these values to the above formula
So, the value would equal to
= $194,435 - $120,000
= $74,435 approx
Answer:
2.2
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
18% = 7% + Beta × 5%
18% - 7% = Beta × 5%
11% = Beta × 5%
So, the beta would be
= 2.2
The (Market rate of return - Risk-free rate of return) is also known as market risk premium and the same has applied.
