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Vilka [71]
3 years ago
7

Consider an income guarantee program with an income guarantee of $6,000 and a benefit reduction rate of 50%. A person can work u

p to 2,000 hours per year at $8 per hour. A. Draw the person’s budget constraint with the income guarantee. B. Suppose that the income guarantee rises to $9,000 but with a 75% reduction rate. Draw the new budget constraint. C. Which of these two income guarantee programs is more likely to discourage work? Explain.

Business
1 answer:
andriy [413]3 years ago
8 0

Answer:

A. Please see attachment .

B.Please see attachment . B) Benefits will end under these conditions when earned income is $9,000/.75 = $12,000, just as shown in a. The difference is that the all-leisure income is higher, but the slope of the line segment from 500 hours of leisure to 2,000 hours of leisure is flatter.

C. (C) A higher income guarantee with a higher reduction rate is more likely to discourage work for two reasons

Explanation:

(C) A higher income guarantee with a higher reduction rate is more likely to discourage work for two reasons.  First, not working at all yields a higher income.  Second, a person who works less than 1,500 hours will be allowed to keep much less of his or her earned income when the effective tax rate is 75%. With a 75% benefit reduction rate, the effective hourly wage is only $2 per hour (25% of $8).

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Retained earnings:40)A)Generally consists of a company's cumulative net income less any net losses and dividends declared since
levacccp [35]

Answer:

The correct answer is letter "A": Generally consists of a company's cumulative net income less any net losses and dividends declared since its inception.

Explanation:

Retained Earnings is the portion of the net earnings of a company that it does not pay as dividends to stakeholders. The corporation retains this money and reinvests it or uses it to pay off a portion of its debt. <em>Retained earnings are calculated by taking the retained earnings at the beginning of the period and adding the current year's net income. Then, net losses are subtracted. The final result represents the retained earnings of the period.</em>

3 0
3 years ago
The setup time for a batch of 250 products is 30 minutes while the production time is 5 minutes for each product. If the batch s
kramer

Answer:

d. Decrease by 0.045 minutes

Explanation:

<u>First Case</u>  

Time per unit for 250 batch size = (30 / 250) + 5 minutes

Time per unit for 250 batch size = 5.12 minutes

<u>Second case</u>

Time per unit for 250 batch size = (30 / 400) + 5 minutes

Time per unit for 250 batch size = 5.075 minutes

The decrease in manufacturing time = Old-time - New time  = 5.12 - 5.075  =  0.045 minutes . So, it Decrease by 0.045 minutes

7 0
3 years ago
What is a major disadvantige of a centrally planned economy
cupoosta [38]

Answer:

Lack of competition

Explanation:

A centrally planned economy lack competitiveness. The government decides what to produce, the price, and the distribution channel. Because of these restrictions, there is no motivation for profits. Without competition, a centrally planned economy will have the following features.

  1. There be a lot of inefficiency and wastefulness.
  2. Consumers will not have a variety of goods and services to choose from in the markets.
  3. Businesses will make low profits.
6 0
3 years ago
You want to buy a house that costs $140,000. You have $14,000 for a down payment, but your credit is such that mortgage companie
rodikova [14]

Answer:

Kindly check explanation

Explanation:

Given the following :

Cost of house = $140,000

Down payment = $14000

Take back mortgage = 126000 = PV

Rate (r) = 5%

Yearly payment one can afford = 22000

a. If the loan was amortized over 3 years, how large would each annual payment be? Could you afford those payments?

Number of period = 3

Using the relation:

PMT = r(PV) / 1 - (1 + r)^-n

PMT = 0.05(126000) / 1 - 1.05^-3

PMT = 6300 / (1-0.8638375)

PMT = 46,268.23

He won't be able to afford it, as the monthly payment is larger than the affordable amount of $22000

b. If the loan was amortized over 30 years, what would each payment be? Could you afford those payments?

PMT = r(PV) / 1 - (1 + r)^-n

PMT = 0.05(126000) / 1 - 1.05^-30

PMT = 6300 / (1-0.2313774)

PMT = 8196.48

He would be able to afford it, as the monthly payment is lower than the affordable amount of $22000

c. To satisfy the seller, the 30-year mortgage loan would be written as a balloon note, which means that at the end of the third year, you would have to make the regular payment plus the remaining balance on the loan. What would the loan balance be at the end of Year 3, and what would the balloon payment be?

Present value of remaining balance after the 3rd year:

Present Value (PV) = PMT[(1 - (1 + r)^-n) / r]

Where

PMT = periodic payment = 8196.48

r = Interest rate = 5% = 0.05

n = number of periods = 30 - 3 = 27

PV = 8196.48[(1 - (1 + 0.05)^-27) / 0.05]

PV = 8196.48[(1 - (1. 05)^-27) / 0.05]

PV = 8196.48[0.7321516 / 0.05]

PV = 120,021.32

Balloon payment :

120,021.32 + 8196.48 = 128,217.80

4 0
3 years ago
Which of the following activities are typically included in a project kick-off meeting? ​
ASHA 777 [7]

Answer:

b. The project manager outlines the project goals

Explanation:

As the name suggests, a project kick off meeting refers to the first and foremost meeting between project manager and his team and the clients of a project when commencing a new project.

The purpose behind such a meeting is to familiarize the project team, make them better understand the project and it's requirements and agreeing upon a plan of work together to accomplish the task.

Following steps would be noteworthy for conducting an effective project kick off meeting:

  • The project manager prepares his team and outlines and conveys the project goals to the team members and how they are to be attained.
  • Beginning the project client relationship on a good note and gaining client's support.
  • Putting one's best efforts with a systematic planned approach for the project kick off client meeting.

7 0
3 years ago
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