Income is an economic standard to retain a successful life in today’s society. An average individual hopes for stable‚ reliable and a fair income‚ however‚ when the standards don’t meet expectation‚ it gives rise to social and economic issues. One of the more prominent issue we are facing in our income inequality. The standard definition for income inequality would be the gap between individuals or households who makes the most money and who makes the least‚ or as some would put it‚ the gap between
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What is the importance of consumption expenditure in determining changes in the level of national income? In every macroeconomic question‚ there always exists its direction towards satisfying the macroeconomic objectives such as achieving long term economic growth and low unemployment levels (Hall and Lieberman‚ 2009). As consumption expenditure is the total spending by consumers on domestic goods and services‚ and national income is the value of all the goods and services provided in an economy
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accounting for income taxes‚ which are the cash method and the allocation method. The cash method is described as a simple and direct approach. The amount of income taxes actually paid for the year is reported on the Income Statement. The amount comes from the firm ’s income tax return and fit is not adjusted in any way. Therefore‚ the firm ’s actual transaction to record its income tax liability is the basis for the amount of the income tax expense reported on the Income Statement. The allocation
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Recently‚ a term known as income inequality has been thrown around in the debate between the rich and the poor. Income inequality is the unfair and ever expanding disparity between the nation ’s highest-income households‚ and the lowest-income households. Although it ’s impossible to establish 100% equality‚ due to it being unfair to give everyone the same exact income even though certain individuals work harder than others‚ thus it should be our
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07 Individual Income Tax Computation and Tax Credits True / False Questions 1. Both the width (or range) of the tax brackets (the amount of income taxed at a particular rate) in the tax rate schedules and the range of the tax rates in the tax rate schedules (the difference between the lowest tax rate and the highest tax rate) vary by filing status. True False 2. The tax rate schedules are set up to tax lower levels of income at higher tax rates than higher levels of income. True False
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Barack Obama’s administration has “focus[ed] all efforts” on the rising income inequality that is affecting the United States economy. Income inequality refers to the extent of unequal distribution of income across a population. According to Emmanuel Saez‚ an economics professor at UC-Berkeley‚ “U.S. income inequality has been increasing steadily since the 1970s‚” partly due to the rise of single-parent families‚ but mostly from a rise in demand for highly-educated workers following the post-industrial
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companies are to report positive results and shall not present any ’surprises ’. Managers therefore often turn to their accounting departments for help‚ whose job it then is to improve the bottom line by changing the information shown in financial statements and hence improve investor confidence. This process is also called earnings management. Earnings management may be utilised in several different ways – facilitated by the flexibility of the US GAAP and the IFRS. These can be stated and interpreted
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prices and nutritional value‚ but for how good they taste. “More or less” Gini index measures inequality Brazil: inequality worldly-famous The view that income inequality harms growth—or that improved equality can help sustain growth—has become
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NATION’S INCOME PART 1: MULTIPLE CHOICES: 1. Macroeconomists study a. decisions of households and firms. b. the interaction of households and firms. c. economy-wide phenomena. d. regulations on firms and unions. 2. Which of the following questions is more likely to be studied by a microeconomist than a macroeconomist? a. Why do prices in general rise by more in some countries than in others? b. Why do wages differ across industries? c. Why do production and income increase
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therefore making its target. Part 2 1. Use the Percentage Sales Method and a 20% increase in sales to forecast Micro Chip’s Consolidated Statement of Operations for the period of September 26‚ 2008 through September 25‚ 2009. Assume a 15% tax rate and restructuring costs of 2% of the new sales figure. Micro Chip Computer Corporation Consolidated Statements of Operations For the period September 26‚ 2007 through September 25‚ 2008 Sales | $8‚334.00 | Cost of Sales | $5
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