Inequality of wealth is a pressing issue right now, both in the US and abroad.
Political scientists should participate in the discussion about wealth inequality, which is a hot topic right now. There is scant proof that democracy and wealth disparity are always related. Although democracy offers numerous benefits, nations do not always move toward greater economic equality as a result.
This isn't because public policy doesn't matter; rather, it's because democracies don't always enact measures that equalize wealth. It is less likely that societies where there are cleavages other than money will embrace wealth-equalizing policies. The impact of democratic politics on wealth is also substantially influenced by voters' perceptions of justice.
Because wealth is not only unequal but also due to this position arose for what voters believe to be unfair causes, voters are most inclined to back redistribution or programs that promote equal chances. Finally, it's also conceivable that wealthy individuals could seize control of democratic politics. Examining when, why, and why this problem of capturing is much more acute in practice is an essential area for future research.
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Answer: Buying $200 stock in AT&T is an example of investment. As in this case the persons income exceeds his consumption and he buys new capital.
Borrowing $1000 from a bank to buy a car to use in business is also an investment as in this case buying a car is like investing in a cash flow producing asset, as the car will be an asset which will help earn money from the pizza business.
Explanation:
Roommate depositing $100 is an example of saving and not investing.
Taking out a mortgage and buying a house is an example of consumption and not investment.
Answer:
b. $ 9,225
Explanation:
The net income needs to be computed considering the revenue and expenses items from the data provided.
Revenues
Fees earned $ 14,403
Expenses
Depreciation expenses $ 1,343
Insurance expenses $ 513
Supplies expenses <u>$ 3,322</u>
Total expenses <u>$ 5.178</u>
Net income $ 9,225
The other items in the question i.e. Accumulated depreciation, Prepaid insurance and Supplies are balance sheet items and are not considered in determining the net income
Answer:
d. $1,000
Explanation:
Implicit cost is the cost which has been incurred, and cannot be avoided. It is best described as an opportunity cost that has been foregone, here the funds have been borrowed specially for coffee shop. Interest expense of $8,000 is the cost for such borrowing, also the amount withdrawn from savings account have been used for coffee shop but the interest income foregone is the opportunity cost = $50,000.00 
2% = $1,000 is implicit cost.
Therefore, correct option is d. $1,000
<u>Answer:</u>
Businesses may deduct all general and fundamental costs of doing business, including publicizing costs to lower their spending expenses. You may deduct expenses for promoting your business to clients. It's essential to take note that these must be standard and sensible prices for publicizing.
The IRS thinks about all expenses for beginning another business as capital costs. That implies they resemble a venture which you cost after some time. All startup expenses are lumped together when figuring charge derivations.
