Solution :
In the first statement, the government institutes a legal minimum of 8 dollar is considered a price floor because it imposes the lower limit on market price. It is binding as the market price is lower at the price of 7 dollars.
In the second statement, it is a price floor as the statement speaks about minimum wage laws that are creating the unemployment. The minimum wages also imposes lower limit at market wage.
The third statement is a price ceiling as the upper limit on price has been imposed. This is not binding since the price is below ceiling price.
Answer:
Tax incentives provided to individual retirement accounts (IRA)
Explanation:
IRAs are a form of private individual retirement plans and they provide tax advantages for retirement savings. Most IRAs provide tax deferrals meaning that they can be deducted from gross income, and they are taxed once only when distributed. While Roth IRAs don't provide tax deferrals but the distributions are tax free.
Answer:
Stock price = $41.50
Explanation:
We know,
Stock price, Po = Dividend of next year (D1) ÷ (Required rate of return (k) - divindend growth rate, g)
Given,
Dividend for the next year, D1 = $5.25
Required rate of return, k = 15.5% = 0.155
Constant growth rate, g = 2.85% = 0.0285
Putting the values into the right formula, we get,
Po = D1 ÷ (k - g)
or, Po = $5.25 ÷ (0.155 - 0.0285)
or, Po = $5.25 ÷ 0.1265
Therefore, Po = $41.50
Therefore, the company's share price is stable and acceptable.
Answer:
$10,974.05
Explanation:
Given that,
Amount to accumulated = $25,000 in two years
Interest rate = 9%
Let the amount be X,
Total amount after two years:
= Year 1 + Year 2
= X(1.09)^2 + X(1.09)
= 1.1881 X + 1.09X
= 2.2781 X
SO, Total amount after two years:
2.2781 X = 25,000
X = 25,000 ÷ 2.2781
= $10,974.05
Hence, the amount deposited at the beginning of each year is $10,974.
Explanation:
A mixed economic system is a system that combines aspects of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims.