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lianna [129]
3 years ago
8

Redistributive philosophies

Business
1 answer:
andrey2020 [161]3 years ago
7 0

Answer:

The government should choose policies  to maximize the total utility of everyone  in society - Utilitarianism

The central goal of Utilitarianism is simply to maximize everyone's benefit (or utility) in society.

The government should choose policies deemed to be just, as evaluated by an  impartial observer behind a "veil of ignorance." - Liberalism

This is the central idea of a "Theory of Justice", a book written by John Rawls. This idea has come to represent the ethical justification behind the redistributive philosophy of liberals.

The government should punish crimes and enforce voluntary agreements, but not redistribute income - Libertarianism

Libertarians believed that income redistribution by the government is unfair because the government takes income from the some people without their consent, and gives it to other people. Libertarians support private charity instead.

Suppose that Ginny believes that the progressive U.S. tax system is flawed because it supports equality of outcomes rather than equality of opportunity. Which re-distributive philosophy is consistent with Ginny's view?

Both liberalism and libertarianism can be ascribed to Ginny's view. Liberals and libertarians do not support equality of outcome, they support equality of opportunity.

The difference lies in the degree of inequality that they are able to tolerate: liberals only tolerate inequality up to a certain port, while libertarians do not really have a problem with inequality as long as it is the result of market outcomes.

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Answer:

The expected market risk premium is 9.20%

Explanation:

In order to calculate the expected market risk premium we would have to calculate the following formula:

expected market risk premium=(Rs-Rf)/β

Rf=3.7%

β=1.28

Rs=15.47%

expected market risk premium=(15.47%-3.7%)/1.28

expected market risk premium=9.20%

The expected market risk premium is 9.20%

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4 years ago
Investment X offers to pay you $4,200 per year for eight years, whereas Investment Y offers to pay you $6,100 per year for five
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Answer:

  • <em>The cash flow stream from investment X has higher present value than the the cash flow stream from investm Y.</em>

Explanation:

<u></u>

<u>1. Present value of investment X</u>

  • Annual payment: C = $4,200
  • Number of years: t = 8
  • Rate: r = 5%
  • PV₁ = ?

Formula:

           PV=C\times [\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}]

Substitute and compute:

        PV_1=\$ 4,200\times [\dfrac{1}{0.05}-\dfrac{1}{0.05(1+0.05)^8}]

        PV_1=\$ 27,145.49

<u>2. Present value of investment Y</u>

  • Annual payment: C = $6,100
  • Number of years: t = 5
  • Rate: r = 5%

Formula:

           PV=C\times [\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}]

Substitute and compute:

        PV_2=\$ 6,200\times [\dfrac{1}{0.05}-\dfrac{1}{0.05(1+0.05)^5}]

        PV_2=\$ 26,409.81

Hence, the cash flow stream from investment X has higher present value than the the cash flow stream from investm Y.

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Answer:

1. Irrelevant costs

2. Capacity

3. Opportunity costs

4. Fixed Expense

5. Going concern

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All of the following are examples of a capital project EXCEPT
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Answer:

c

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