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Income Distribution

Branch office

Outdoor Sports Company, with its main office in Iowa, is considering opening a branch office in Los Angeles. Under normal economic conditions, which have a 45% chance of occurring, Outdoor can expect to earn a net income in that branch office of $50,000. If there is a mini-recession, which has a 25% chance of occurring, Outdoor

Inventory and cost of goods

During 2003, A Company and Z Company made the following identical purchases in the order shown: 100 units @ $10.00 each 200 units @ $10.50 each 200 units @ $11.50 each 100 units @ $12.00 each Each company sold 400 units but A Company uses LIFO inventory costing and Z Company uses FIFO inventory costing. Assume there was

Plank's Plants : Sustainable Growth Rate

17. Plank's Plants had net income of $2,000 on sales of $50,000 last year. The firm paid a dividend of $500. Total assets were $100,000, of which $40,000 was financed by debt. a. What is the firm's sustainable growth rate? b. If the firm grows at its sustainable growth rate, how much debt will be issued next year? c. W

Monopolist point of view and a Pure Competition point of view

--- Assume that a pure monopolist and a purely competitive firm have the same unit costs. Contrast the two firms in the long run equilibrium with respect to the following: a) Price charged b) Output produced c) Profits d) Allocation of resources e) Impact on income distribution

Show auxuliary calculations of the Gini coefficient

Poverty Rates, Depth and Severity Use the following information about 2 countries, Northland and Southland, each with a population of 10 people and each with a poverty threshold of $18,000 ($18K) per person. Show your work for all questions. (SEE ATTACHED)

Rate of change

U(x,y)=X(square)Y Px=$1.60 Py=$8 I=$90 calculate the rate of change in the cost of living for the consumer using the a. laspeyeres Index (cpi b. paasche index (gdp deflator) c. true index (ideal index) d. if the consumer's income had increased to I=$96 per period, is the consumer better off or worse off than before?

GROUP'S SHARE of Income Taxes

Latest Data available is for the year 2003 1. What is the Groups Share of and the Income Split Point for Individual Income Taxes as of 2003 for the following group of income earners: GROUP'S SHARE of Income Taxes INCOME SPLIT POINT Top 1% of income earners

5. Average daily balance, average monthly balance

Suppose that you never carry cash. Your paycheck of $1,000 per month is deposited directly into your checking account on the first day of the month, and you spend your money at a constant rate so that at the end of each month your checking account balance is zero. What is your average daily money balance for the month? H

AD Curve

An increase in the Ml money supply may __________ total expenditures, leading to a __________ shift of the AD curve. a. increase; rightward b. increase; leftward c. decrease; rightward d. decrease; leftward Greater wealth makes __________ people willing to spend the national income, causing __________ the economy's A

GDP versus GNP

What is the difference between gross domestic product (GDP) and gross national product (GNP)?

Financial Statement Analysis/Accounting

On December 31, 2004, Acquire Company acquired Target Company. Acquire issued $5,000,000 in stock in exchange for 85% of the outstanding shares of Target. The acquisition was treated as a purchase. The historical cost balance sheets of Acquire and Target prior to the acquisition are given below. Please see attached.

GDP Problems

Answer the following questions based on the following data...GDP totals? GNP totals? Net domestic product is? National Income Totals? (See attachment for full question)

Macroeconomic Review Questions

Please answer the following questions based on the following data ($ in billions)... The level of autonomous consumption in the economy is? The level of induced consumption at a disposible income of $600 billion is? etc. (See attachment for full questions)


Inventory on Dec 31,2004 is understated by 66,000 inventory on dec 31, 2005 is overstated by 30,000 year sold 2004 2005 2006 a.cost of good 715,000 847000 770000 income 220,000 275000 231000 current assets 1,15,000 1,265,

Personal distribution of income--what is the trend?

Visit the U.S. Census Bureau website at www.census.vov/hhes/income/midclass/index.html and select Data Highlights. Since 1969, how has the share of aggregate household income received by the lowest and highest income income quintiles (fifths) changes. Make a summary and sound conclusion.