as financial liberalisation and lower taxes‚ among other things‚ have fuelled a rise in the numbers of the very rich. But now‚ resentment over inequality is growing ever more vocal‚ even as the rich see the crisis erode some of their wealth. Is taxing the rich more heavily necessary to buy social peace? Or do adverse effects on entrepreneurship and innovation outweigh any such considerations? And should we be concentrating on particular kinds of taxes‚ taxes on income from particular activities‚
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(If c1 is the marginal propensity to consume‚ and $1 is spent in the economy‚ the person who gets that dollar will spend c1 of it‚ the person who receives that c1 will spend c1(c1) or c12‚ and so forth. Without deriving it‚ it turns out that 1 + c1 + c12 + c13 + …….. + c1n converges to 1/{1 – c1}‚ or the multiplier.) Let’s say we estimate a consumption function from the available data‚ and the marginal propensity to consume is estimated to be c1 = .80 (meaning that‚ on average‚ people in the
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CHIRANJIV BHARATI SCHOOL‚ PALAM VIHAR SESSION 2013-14 WORKSHEET ON INTRODUCTION SUBJECT: ECONOMICS CLASS: XII Previous years (past 3 years) questions 1 Mark Questions Q1: Give meaning of micro economics. Q2: What is opportunity cost? Q3: Define an Economy. Q4 What is market economy? Q5: What is a planned economy? Q6: Give two examples of Micro economic studies. Q7: Define macro economics. Q8 How is production possibility curve affected by unemployment in the economy? Explain. Q9: explain
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injective to contribute) Modern taxes are monetized (individuals provide just money) Tariffs are taxes imposed on imported goods. Tariffs protect domestic producers. Taxes can be divided to: • direct • indirect Direct taxes are individual income tax‚ payroll tax (used to finance social) security‚ corporation income tax (tax on net profit of corporations)‚ tax on property. Indirect taxes are custom duties on imported goods from abroad‚ exice taxes (telephone services‚ air travel
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a manager handles many tasks and works that his employee cannot perform. In the other words‚ the tasks that the manager had performed are valued highly or known as high value of marginal product‚ by their clients who are willing to pay for the services‚ than the works done by the employee to them. As the value of marginal product of labour determines the demand for labour‚ thus the manager also has a high demand on his services. Due to the human capital is costly to acquired‚ so the supply of manager
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Our client‚ Individual #1‚ is currently earning $350k in gross receipts and $175k in gross profit‚ respectively‚ from his IT consulting business. In discussions with the client‚ we learned he wants to transition his sole proprietorship/LLC into either an S-Corp or C-Corp. I propose his reorganization as an S-Corp as although it limits his potential for equity investment‚ it provides both a liability and tax shield. Corporate Formation 1) Section 351: Since Individual will be in control (80%+
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impose significant restrictions on international trade All of the above are correct 8. In a particular country in 1998‚ the average worker needed to work 25 hours to produce 40 units of output. In that same country in 2008‚ the average worker needed to work 40 hours to produce 68 units of output. In that country‚ the productivity of the average worker (Points : 1) decreased by 1.7 percent between 1998 and 2008. remained unchanged between 1998 and 2008. increased
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Government Interactions with the Economy 1) Negative Externalities- external costs lead to an over allocation of resources to the specific economic activity. There are 2 possible ways of correcting these overspills: Taxation- the government can demand an effluent fee‚ which is a charge to a polluter that gives the right to discharge into the air or water a certain amount of pollution. Regulation- the government could specify a maximum allowable rate of pollution. This would require the
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Chapter 1—Federal Income Taxation - An Overview MATCHING Match each term with the correct statement below. a. Average tax rate b. Effective tax rate c. Horizontal equity d. Marginal tax rate e. Progressive rate structure f. Proportional rate structure g. Regressive rate structure h. Tax avoidance i. Tax evasion j. Vertical equity 1. A tax rate that increases as the tax base increases. 2. A tax rate that decreases as the tax base increases. 3. Fraudulent methods
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chapter Six businesses and Their Costs ANSWERS TO END-OF-CHAPTER QUESTIONS 6-1 Distinguish clearly between a plant‚ a firm‚ and an industry. Contrast a vertically integrated firm‚ a horizontally integrated firm‚ and a conglomerate. Cite an example of a horizontally integrated firm from which you have recently made a purchase. A plant is an operating unit where production takes place. This production can be manufacturing‚ farming‚ mining‚ retailing‚ wholesaling‚ warehousing—anything
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