Answer:
The line on the graph will be parallel to the pre-subsidy line and the new constraint will then be equal to the points connecting the two lines.
Explanation:
The subsidy by government to single parents is $3 per hour for up to 8 hours. The total of subsidy will be $16 for each day. The labor force who were not receiving the subsidy before had steep indifference curve but now few workers will find utility maximization with flatter indifference curve so the workers will join the subsidy program.
Answer:
Differences in abilities and talents
Explanation:
Income inequality refers to variation or discrepancy between income levels of individuals. Income inequality arises on various accounts one of which being, difference in abilities and talents.
All individuals possess different skill sets and their efficiencies vary too. Some individuals are more creative and talented than others while some are more laborious and hardworking.
Each skill set has it's own demand and thus, income is fixed as per the demand of a particular skill set for a given sector.
This leads to some earning lot more than others and differences in pay scales as per the abilities individuals possess.
The degree of risk is associated with the probability or magnitude of loss. The given statement is true.
The area of mathematics known as probability deals with numerical representations of the likelihood that an event will occur or that a statement is true. An event's probability is a number between 0 and 1, where, roughly speaking, 0 denotes the event's impossibility and 1 denotes certainty.
Simply put, probability is the likelihood that something will occur. When we don't know how an event will turn out, we can discuss the likelihood or likelihood of several outcomes. Statistics is the study of events that follow a probability distribution.
Learn more about probability here
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Answer: $62
Explanation:
The customer sold the stock short at $74 per share. Later on, the customer sold a Sept 65, Put at $3 on this stock. If the short put is exercised, the customer is obligated to buy the stock at $65 per share. Since the customer received $3 in premiums when the put was sold, the net cost to the customer is $62 per share for the stock (this is the cost basis in the stock for tax purposes). The stock that has been purchased is delivered to cover the short sale, closing the transaction. The customer's gain is: $74 sale proceeds - $62 cost basis = 12 point gain.