Explain labor is a resource necessary to produce many goods
Labor is a resource that is necessary to produce many goods. "If the price of labor falls," says the economist, "the prices of goods will soon follow." How does this work?
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Ohn and Elaine, ages 29 and 28, are married and file a joint return. In addition to having TWO dependent children (Jacqueline and Jesse), John and Elaine have adjusted gross income ("AGI") of $90,000 and itemized deductions of $15,000. What is the
Carol received a gift of stock from her favorite uncle. The stock had a fair market value of $30,000 and a basis to the uncle of $10,000 at the date of the gift. How much is taxable to Carol from this gift?
A firm agrees to accept annual payments on a $1,000,000 loan with a fixed interest rate of 8% in exchange for making the annual payments on a loan with floating rate payments based on LIBOR. Payments are interest only with principal due in 10 year
In 2013, Dave, age 15, will have $200 of interest from a certificate of deposit and $4,000 from performing landscaping services. Assume Dave is claimed by his parents as a dependent. What is Dave's standard deduction for 2013?
Jennifer is considering a project that will produce cash inflows of $2,100 a year for 4 years. The project has a 12 percent required rate of return and an initial cost of $6,000. What is the discounted payback period?
What is Pavlina's taxable income for 2013? Assume she is single and claimed TWO dependent children, Andrew and Alexander. Assume further that Pavlina's AGI is $100,000 and that her itemized deductions are $20,000.
XYZ plating makes a product where fixed costs are $7,500 per year and it has a variable cost of $30 per unit. It can make 400 units a year and sell them for $100 each.
What would happen to the future production possibilities curve (PPC) on this graph, if today's production of capital goods exceeds the depreciation of capital?
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