Should average disposable income be used to predict sales based on the sample of 14 sunflowers stores? Answer to the question no. 01 ➢ Average disposanble income should be used to predict sales. ➢ John Meynard Keynes‚ “The higher the income the higher the consumption is”. ➢ Consumption has a positive relation with disposable income. ➢ From the scatter diagram made by the given data‚ it is noted that as the disposable income increases the annual sales also
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causes of inequality and redistribution of income? Inequality of incomes is clearly not good as well if it results from government privileges. With the inequality‚ it can sets up perverse incentives. Inequality also arises from unequal labour market outcomes and from unequal ownership of capital driven by differences in human capital and discrimination. A Gino ratio can used to measure the level of inequality. When the Gino ratio increases‚ it means the income inequality has also increases‚ and the
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FEDERAL INCOME TAX FORMULA Gross Income - Above the Line Deductions____ Adjusted Gross Income - Itemized or Standard Deduction - Exemptions_________________ Taxable Income x Applicable Marginal Tax Rates for Each Bracket Tax Liability - Tax Credits_________________ = TAX OWED ABRIDGED INCOME TAX ACCOUNTING I. Gross Income [§ 61] — A. Wages‚ Salaries‚ and Tips B. Interest Income C. Dividend Income D. Other (Net) Income—Reduced by Deductible Expenses 1. State & Local
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expendable income is invested into capital assets that earn an additional income. Stephen Moore found that the upper class spends an average of $28‚272 per year on nonessential items (Moore 34). The middle class spends $15‚843 per year and the lower class $11‚247 per year (Moore 34). While
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Introduction Consumer Behavior is how consumers allocate their money incomes among goods and services. Each consumer has preferences for certain of the goods and services that are available in the market. Buyers also have a good idea of how much marginal utility they will get from successive units of the various products they might purchase. However‚ the amount of marginal & total utility that the people will get will be different for every individual in the group because all individuals have
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quantity at the right time at the right place for the right price and to the right target customers (consumer) and it is the science of process having its presence in all sectors of the industry. The goal of logistics work is to manage the fruition of project life cycles‚ supply chains and resultant efficiencies. Logistics is concerned with getting (or transmitting) the products and services where they are needed or when they are desired. It is difficult to accomplish any marketing or manufacturing without
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KEYNES THEORY OF INCOME AND EMPLOYMENT CONTENT OF REPORT • CLASSICAL THEORY OF EMPLOYMENT • KEYNES CRITICISM OF CLASSICAL THEORY OF EMPLOYMENT • KEYNES THEORY OF INCOME AND EMPLOYMENT • SIGNIFICANCE OF KEYNES THEORY • Criticism on Keynes’ Theory KEYNES THEORY OF INCOME AND EMPLOYMENT The theories of employment are broadly classified into two: (a) Classical theory of employment (b) Keynesian theory of employment. The classical theory
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Racial discrimination is the main and ongoing problem in the social life of Americans. When we look at the gap of incomes between White and African Americans‚ we can see the inequality between these two groups. In general‚ whites have more annual earnings than their black counterparts in America. Lori Ann Campbell and Robert L. Kaufman emphasized that the wealth determinants‚ which are the indicators of socio-economic status‚ have effected more on Whites than Blacks. And even when society is organized
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Middle Income Trap Questions 1. The Middle Income Trap is an economic development situation in which a country that has attained a certain income (due to given advantages such as cheap labour and natural resources) gets stuck at that level without graduating toward high-income status. 2. An economic explanation for countries being caught in this ‘trap’ is that these countries are trapped between benefits existing when you’re at the lowest level of development and at the highest. When an economy
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Kesebir’s research addresses the assumption that economic growth will influence one’s happiness. In their research‚ Income Inequality Explains Why Economic Growth Does Not Always Translate to an Increase in Happiness‚ they provide one explanation for why some countries show the paradox of economic growth‚ but the results is not producing happiness. Using data on economic growth‚ income and inequality‚ and happiness from 34 different countries‚ Oishi and Kesebir found initial support for the idea of
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