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Income Distribution

Transfer Payments

Define: a- Transfer payments, and b- Explain why they are not included in the government purchases part of the GDP accounts

About markets and Institutions

Why is a system of well-defined and enforceable property rights crucial when a country is converting to a market-based system of resource allocation? Can someone please explain this to me. Thank You.

Microeconomics

1. Do you think exceptionally high pay to CEO's is economically justified? Why or Why not?. 2. A. Should a nation's income be distributed to its members according to their contributions to the members' needs? Should society attempt to equalize income or economic opportunities? Are the issues of equity and equality in the dis

Somalia: Anarchy Breeds Piracy

Why and how are the Pirates pirating? (Economic) Explain what is behind the reason for this piracy. Mostly an economic need to take on the risk of pirating as jobs is not present in Somalia? I need some general notes and a direction to build on.

Return On Investment (ROI) and Residual Income..

A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below. Show the formulas used: Company A B C Sales $400,000 $750

Control mechanisms

I need to Examine the positive and negative reactions to the use of the following control mechanisms in American Express. 1- Balance sheet 2- Return on Investment 3- Revenue Growth 4- Liquidity Report In 300 words If you used an electronic source, include the URL. If you used a printed source please attach a copy of

Diluted EPS

Please see the attached file.: EPS COMPUTATION OF BASIC AND DILUTED EPS Edmund Halvor of the controller's office of East Aurora Corporation was given the assignment of determining the basic and diluted earnings per share values for the eyar ending december 31, 2007. Halvor has compiled the information listed below:

Theory of Individual Behavior

An internal study at Mimeo (mfg of low end photo copiers), revealed that much of its workers assembles 3 copiers per hour and is paid $3 for each assembled. There is no supervisor, but there is a quality control rep who verifies the quality of each copier before the worker is paid. Your supervisor wants you to evaluate a plan

GDP (Gross Domestic Product) and its components

Find data on GDP and its components and compute the percentage of GDP for the following components for 1950, 1980 and 2005: A) Personal consumption expenditures B) Gross private domestic investment C) Government purchases D) Net exports E) National defense purchases F) State and Local Purchases G) Imports To find dat

Bascom Bakery Inc. Net Income

During 2007, Bascom Bakery Inc. paid out $21,750 of common dividends. It ended the year with $187,500 of retained earnings versus the prior year's retained earnings of $132,250. How much net income did the firm earn during the year?

Borrowing and interest rates

In three or four sentences, explain whether each of the following statements is True, False or Uncertain. No points will be given for an undefended answer. Illustrate your answer with a properly labeled diagram where appropriate.

Let commodity 1 be bottled water, measured in gallons.

Let commodity 1 be bottled water, measured in gallons. Commodity 2 denotes plain tap water, also measured in gallons. A. Samantha places no premium on commodity 1; that is, she regards a unit of the first good as no different - not better and not worse - than a unit of the second good. Draw a typical indifference curve for Sa

Income effects and substitution effects

After Iraq invaded Kuwait, gasoline prices rose dramatically--up to 50%. There were many effectrs of the increased price of gasoline. Explain the following effects in terms of the income effect, substitution effect, or both effects: a. people drove less and purchased less gas b. people ate out less often c. people had mo

gross domestic product..

In a simple economy suppose that all income is either compensation of employees or profits. Suppose also that there are no indirect taxes. Calculate gross domestic product from the following set of numbers. Show that the expenditure approach and the income approach add up to the same figure. Consumption $ 5,0

ABC Inc., rents equipment to customers ranging from

I am having problems with the numbers adding up correctly. Please see attached. Thanks, ABC Inc., rents equipment to customers ranging from homeowners to large construction companies. The financial information shown below was gathered from its accounting records for 2006. Assume any increase or

Economics: Income Statement and Retained Earnings

A summary of the operations of XYZ Inc. for the year ended May 31, 2006, is shown below. Advertising expense . . . . . . . . . $ 2,760 Supplies expense . . . . . . . . . . . 37,820 Rent expense . . . . . . . . . . . . . 1,500 Salaries expense . . . . . . . . . . . 18,150 Miscellaneous expense . . . . . . . 4,1

Correcting Balance Sheet

I have been asked to correct the balance sheet; however, I do not understand what I am to do. Please assist. Correct the following balance sheet. Balance Sheet December 31, 2006 Assets Liabilities and Owners' Equity Cash .............$ 55,000 Buildings . . . . . . .. .$325,000

Permabilt Corp

Commmon and preferred stock-issuances and dividends. Permabilt Corp. was incorporated on January 1, 2003, and issued the following stock, for cash: 1,200,000 shares of no-par common stock were authorized; 350,000 shares were issued on January 1, 2003, at $23 per share. 400,000 shares of $100 par value, 10.5% cumulative,

From the following data, prepare a classified balance sheet for Simon Company

Balance Sheet Preparation From the following data, prepare a classified balance sheet for Simon Company at December 31, 2006. Accounts payable . . . . . . . . . . . . . . . . . . $ 62,500 Accounts receivable . . . . . . . . . . . . . . . . . 123,000 Buildings . . . . . . . . . . . . . . . . . . . . . . 418,500 Owners' equi

A company purchased a machine for $100,000 four years ago.

A company purchased a machine for $100,000 four years ago. It was being depreciated on a straight-line basis over five years. The company decides to replace this machine today with a more productive machine that costs $125,000. The old machine can be sold today for $25,000. The income tax rate is 40%. The net initial investment

Dividends retained in earning and yield

Springsten Music Company earned $ 820 million last year and paid out 20 percent of earnings in dividends. By how much did the company's retained earnings increase? With 100 million share outstanding and stock price of $50, what was the dividend yield?

Rule of Thumb and Specific Report Explanation

For Q2, what are the main things do I need to talk about in my answers, except for the London Hotels report? I know for definite I need to show how the rule of thumb works, but other than that, what else? One more thing, what is the rule of thumb? I found the rule of pricing in the text book: P = MC/(1+1/Ed), is this the

DuPont analysis

Given the following data: sales, $200,000; net income, $30,000; total assets, $100,000; and total debt, $40,000 calculate: 1. net profit margin 2. total asset turnover rate 3. return on assets 4. return on equity

GDP and economic well-being

Discuss the relationship between the level of GDP and economic well-being. What factors of well-being are missing from the GDP? Is there a point where the GDP could increase to such a high level that economic well-being could be compromised? If so, describe some of the opportunity costs associated with maximizing the GDP.

Choosing between shares/investments

Consider two equally risky shares, Hi and Lo. Hi shares pay a generous dividend and offer low expected capital gains. Lo shares pay low dividends and offer high expected capital gains. Which of the following investors would prefer the Lo shares? Which would prefer the Hi shares? Which wouldn't care? Explain. Assume that any stoc

Finance Assignment

1. The Sally Corporation's income statement is given below. Sally Corporation Sales.......................................$250,000 Cost of Goods Sold....................... 145,000 Gross Profit.................................105,000 Fixed Charges (other than interest)...... 25,000 Income before interest and

Financial Statements

________________________________________ Practice 2-14 Expanded Accounting Equation p. 60 For the following four cases, use the expanded accounting equation to compute the missing quantity. ________________________________________ Exercise 2-6 Balance Sheet Preparation p. 63 From the following data, prepare a

Ricardo Approach

Ricardo believed that the goal of economic analysis was to understand the distribution of income between the three major classes: capitalists, workers, and landowners. He also believed that the prices of commodities would be proportional to the labor embodied in the commodities, and be independent of the wage and profit rate. S