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Stu and Harriett divorce after eight years of marriage. Under the divorce decree, Harriett receives a vacation home that had been held jointly with Stu while they were married. The vacation home was acquired seven years ago for $90,000 but is worth $170,000 today. Additionally, Stu is required to pay Harriett $2,000 per month; $1,300 is for alimony and $700 is for child support for their 6-year-old son who lives with Harriett.
a. How much gross income does Harriett recognize?
b. Will Stu get a tax deduction for any of these payments?
Illustrate what is approximately the maximum amount the firm is willing to pay to be allowed to use more units of input x, for small.
Discuss the reason why governments might want to intervene and how they might do- with respect to the following "problem" in the functioning of an otherwise perfectly-competitive ("pareto-efficient") economy:
A New Hampshire resort offers year-round activities: in winter, skiing and other cold-weather activities; in the summer, golf, tennis, and hiking. The resort's operating costs are essentially the same in winter and summer. Management charges highe..
Suppose the only firm in an economy produces $10 worth of final goods in a year and only sells $9 of goods that year. We know that GDP can be equivalently be thought of as either total spending on new goods and services in an economy.
Moorea spends all of her income on Mochi Frozen Yogurt which costs $1 per cup. She makes $400 per month but lives in a bad neighborhood and is robbed of half her money 20% of the time. Assume YN and YR represent her consumption of yogurt in cups i..
What government officials increase the price of parking ticket from $40 to $50; they are surprised that their revenue actually falls. What happened?
What is the estimated annual profit for a mine producing 21,346 tons per year (which is at 100% capacity) when zinc sells for $1.00 per pound? There are variable costs of $20 million at 100% capacity and fixed costs of $17 million per year.
Suppose that last year the equilibrium price and the quantity of good X were $20 and $10 million pounds. Because of strong demand this year equilibrium price and quantity of good X are $30 and 15 million pounds. Assuming that the supply curve of g..
A country with a relatively small + aggregate demand shock (a shift outward in the AD curve) may have a substantial economic boom, but sometimes countries that have massive increase in the AD curve (hyperinflation countries like Germany before WWI..
Find out an article on decreased consumer spending, list the name of the article and provide the link to it.
a new hampshire resort offers year round activities: in winter, skiing and other cold-weather activitie; and in summer, golf, tennis, and hiking. The resort's operating costs are essentially the same in winter and summer.
Larry's marginal rate of substitution of leisure for income and the person's optimal number of hours worked is seven hours, then the wage rate must be
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