Determine price of the land parcel

Assignment Help Managerial Economics
Reference no: EM1372035

Assume that the current market rate of interest is 10%. The market rent on a parcel of land is $6,000 per year. A 10% land tax is imposed. As a result of the tax, the price of the land parcel:

falls from $60,000 to $30,000.
increases from $30,000 to $60,000.
falls 10 percent.
falls 20 percent.

According to the Harberger model of the incidence of the corporate income tax, the tax:

reduces the return to capital in the corporate sector of the economy only.
reduces the return to capital in all uses.
has no effect on the return to capital.
increases the return to capital.

If corporations maximize profit, a corporate income tax:

has no affect on the profit-maximizing output in the short run.
reduces the profit, maximizing output in the short run.
increase the profit, maximizing output in the short run.
increases the supply of corporate output in the short run.

Assuming that corporations maximize profits and investors seek to maximize the return to their investments, the long-run impact of a corporate income tax is to:

reduce the incomes of corporate shareholders only.
reduce the incomes of workers only.
reduce the incomes of all investors.
increase the price of both corporate and non-corporate goods.Suppose that the current market rate of interest is 10 percent. The market rent on a parcel of land is $6,000 per year. A 10-percent land tax is imposed. As a result of the tax, the price of the land parcel:

falls from $60,000 to $30,000.
increases from $30,000 to $60,000.
falls 10 percent.
falls 20 percent.

According to the Harberger model of the incidence of the corporate income tax, the tax:

reduces the return to capital in the corporate sector of the economy only.
reduces the return to capital in all uses.
has no effect on the return to capital.
increases the return to capital.

If corporations maximize profit, a corporate income tax:

has no affect on the profit-maximizing output in the short run.
reduces the profit, maximizing output in the short run.
increase the profit, maximizing output in the short run.
increases the supply of corporate output in the short run.

Assuming that corporations maximize profits and investors seek to maximize the return to their investments, the long-run impact of a corporate income tax is to:

reduce the incomes of corporate shareholders only.
reduce the incomes of workers only.
reduce the incomes of all investors.
increase the price of both corporate and non-corporate goods.

Reference no: EM1372035

Questions Cloud

Determining a market structure by concentration ratio : An industry has 20 companies and a concentration ratio of 30 percent. If you were in this industry and there was an increased demand for the product that pushed up price of the goods,
Write a enquiry plan and prepare report of enquiry activity : Write a Enquiry Plan - What is your enquiry question about and why is it important to study this specific issue/debate/problem?
Sketch diagram displaying how message-application-layer : Sketch a diagram displaying how message gets from Alice's host to Bob's host. Ensure to list series of application-layer protocols which are used to move message between two hosts.
Various family patterns and structures : Discuss the various family patterns and structures which are economic based focusing on the functioning of the family comparing large extended families which are nomadic, agrarian, or rural with smaller families which are urbanized.
Determine price of the land parcel : Assume that the current market rate of interest is 10%. The market rent on a parcel of land is $6,000 per year. A 10% land tax is imposed. As a result of the tax,
Human services-faith-adulthood and practice : Summarize in your own words what the textbook (Robert S. Feldman) says about one of the following topics: forming loving relationships, choosing a career, or having children. Be sure to integrate a Christian perspective into your posting.
Write down java console application to add new student : Write down java console application presents the following menu. Add new student and scores in Biology, Physics and chemistry Search for a given student.
Pros and cons of social promotion : Social promotion is the promoting of student from one grade to next even if he or she is failing courses. The rationale for social promotion is that moving students to next grade prevents them from being stigmatized because they're older and bigger..
Voluntary export restraint agreements : Determine what are voluntary export restraint contracts and explain why do some governments force foreign exporters into them instead of just using quotas or tariffs to restrict imports by the same amounts?

Reviews

Write a Review

Managerial Economics Questions & Answers

  Marketing campaign by the champagne industry

Today's Friday night, and you are just about to leave your room to attend a party. However, a copy of New York Times catches your eye.

  Find the factors responsible for difference in elasticity

How large of a tax-induced value raise would it take to decrease cigarette consumption by 20%? And Find the factors responsible for difference in elasticity.

  Production isoquants and isocost line

A company uses two inputs to produce a final good. If the price of one of the inputs raise and price of the other remains the same

  Calculating units of output

Ann McCutcheon is  employed  as a consultant to a company producing ball bearings. This company sells in two distinct markets, each of which is completely sealed off from the other.

  Correlation in amount of friction in economy demand & supply

Make some research on a topic known to economists as 'friction-free' or 'low-friction' economy. Early writers on this topic foresaw many of the seismic shifts that have occurred in the market place over last one to 2-decades.

  Supply and demand in professional sports

Draw the individual cost curves on one graph: marginal cost, average total cost, average ?xed cost, and average variable cost. Place costs ($) on the y-axis and quantity (Q) on the x-axis.

  Explain barriers to entry and limit pricing

Assume that, prior to other company's entering the market, the maker of a new smartphone earns $100 million per year. By reducing its price by 50%,

  Find amount of labor in units to get maximum output

The following production function are given and solve this problem using an spreadsheet approach and then do the problem using the optimization procedure

  How capital investment affect the marginal product of labor

How does capital investment affect the marginal physical product of labor and does more college education have the same kind of effect also which is a better investment

  Market structure and pricing decision applied problems

Market Structure and Pricing Decision Applied Problems, BUS 640 Managerial Economic,

  Compute the profit maximizing level of output

Monopoly with two production plants and cost functions of C1 = 50 + 0.1 Q1^2 and C2 = 30 + 0.05 Q2^2. Compute the profit maximizing level of output

  Sales trend analysis

During the last ten-years, sales revenue has increased from 25 million to 65 million. Estimate the company's growth rate in sales using the constant growth model with annual compounding.

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd