In a two-period model, assume that there are 20 households each with an income of $35,000 in period one and an income of $45,000 in period two. The equilibrium rate of interest faced by the household is 50 percent. The government decides to offer each household a tax rebate of $1,500 in period one. As a rational economic agent you know that the government will tax the households in period two, in order to repay its borrowing. With the interest rate unaffected by the government's action, the government will impose a tax of _____ per household, in period two.
A. ?$2,600
B. ?$3,265
C. ?$1,500
D. ?$2,250
Answer: D
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Using the retail inventory method, if the cost to retail ratio is 75% and ending inventory at retail is $159,000, then estimated ending inventory at cost is $221,143.
Answer the following statement true (T) or false (F)
Zahra agreed to act as surety for a loan taken by her son, Rudo, from the Third National Bank. The terms of the loan provided that Rudo would pay the loan off in 12 monthly installments at 10 percent. If Rudo renegotiates the terms of the loan with the bank without Zahra's knowledge and is now obligated to pay the loan off in 12 monthly installments at 9 percent, which of the following statements is true?
A. Zahra must notify the bank in writing that she no longer wishes to act as surety in order to avoid liability under the new terms. B. Zahra is no longer obligated because her responsibilities as a surety cannot be changed without her consent. C. Renegotiation of the note by Rudo does not relieve Zahra of liability as surety because the new terms are more favorable than the original terms. D. Zahra must notify Rudo in writing that she no longer wishes to act as surety in order to avoid liability under the new terms.
Which of the following would not be a complementary asset for a solar panel manufacturer?
A) international solar equipment certification standards B) government funding for green technology C) centralized hierarchical decision making D) innovation-driven management team E) subsidies for adoption of solar energy
_____ information can be censored if the content is deemed offensive to a political, religious, or cultural group
a. Public c. Secretive b. Private d. Hidden