Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
What are you going to do about the price of gas? Answer the following questions and bring in outside resources as needed. Let us say you graduate from college and earn $30,000 in pretax income and initially pay $6,600 in income taxes, consume 600 gallons of gasoline per year (at a price of $5.00 per gallon), and spend $18,000 on other goods (at a price of $1.00 per unit).
A) Draw a complete graph showing your initial budget line, indifference curve, and utility maximizing quantities of gas and other goods. What is the marginal rate of substitution?
B) What would happen if the government imposed a $2.00 per gallon gas tax? How would this affect your decision making?
C) Discuss how the tax impacts you abilities and discuss other factors that will be considered when making decisions.
Verified Expert
Pretax income was $30,000 As 6,600 has to pay as income tax the income becomes $30,000- 6,600= $23,400 The consumer is consuming 600 gallons of gasoline and 18000 other goods.
You just purchased a bond that matures in 16 years. The bond’s par value is $1,000, and you purchased the bond for $1,050. The bond’s issuer pays interest annually at the end of each year. The bond’s current yield is 6.25%. What is the bond’s yield-t..
An investor buys 5 call option contracts, each on 100 shares with a strike of 60. There is an 8-for-5 stock split. What is the new strike price? The new number of options in one contract?
A trader enters into a one-year short forward contract to sell an asset for $60 when the spot price is $58. The spot price in one year proves to be $63. What is the trader’s gain or loss? Show a dollar amount and indicate whether it is a gain or a lo..
Is there a Friday effect on the daily simple returns of S&P composite index? -Estimate the model and test the hypothesis that there is no Friday effect. Draw your conclusion.
Stock W has an expected return of 12% with a standard deviation of 8%. If returns are normally distributed, then approximately two-thirds of the time the return on stock W will be: a) between 12% and 20% b) between 8% and 12% c)between -4% and 28% d)..
DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, ..
Beasley Industries' sales are expected to increase from $5 million in 2013 to $6 million in 2014, or by 20%. Its assets totaled $3 million at the end of 2013. Beasley is at full capacity, so its assets must grow in proportion to projected sales. What..
A financial planning service offers a college savings program. The plan calls for you to make six annual payments of $16,500 each, with the first payment occurring today, your child’s 12th birthday. Beginning on your child’s 18th birthday, the plan w..
Suppose 1-year T-bills currently yield 7.00% and the future inflation rate is expected to be constant at 4.50% per year. What is the real risk-free rate of return, r*? Disregard any cross-product terms, i.e., if averaging is required, use the arithme..
Jo-Ann produces swimming trunks. The average selling price of one of its swimming trunks is $76.02. The variable cost per unit is $22.05, and Jo-Ann has average fixed costs per year of $6131. Determine the degree of operating leverage for the level o..
Build a financial profile for OoredooCompany - Export the info (income statement and balance sheet for year 2014 ONLY from AUX website ONLY) to Excel and use them for computing the ratios.
Individuals Lloyd and Grace form an S corporation, with Lloyd contributing cash of $100,000 for a 50% interest, and Grace contributing appreciated ordinary income property (adjusted basis of $20,000 and a fair market value of $100,000). Determine Llo..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd