Consider an individual who must drive to his place of work. Assume that there are 16 available hours in the day, that his wage rate is $20 per hour, and that he has nonlabour income of $100 per day. The commute takes one hour each day and it costs $40 in expenses for the round trip. Using a work-eisure diagram, depict his labour supply choice, including his reservation wage. Analyze the impact of an increase in commuting costs on his participation and hours decision. Analyze the impact, first of an increase in commuting time from two to four hours per day, and, second, of an increase in driving expenses from $40 to $60 per round trip, keeing commuting time at two hours.

Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information:

• She received $99,000 in salary.
• She received $13,500 of dividend income.
• She received $4,200 of interest income on Home Depot bonds.
• She received $23,000 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $6,700.
• She received $14,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $4,700.
• Mary receives one exemption ($4,000), and she has allowable itemized deductions of $7,500. These amounts will be deducted from her gross income to determine her taxable income.

What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations.

What is her average tax rate? Round your answer to 2 decimal places.

In vertebrate societies, what are the costs to an individual who makes an alarm call? Based on research in ground squirrels, which individuals are most likely to make alarm calls, and what benefits do they receive by doing so?

1. Explain how the possible profit and loss possibilities arise for an individual who invests in a:
   1. A Call Option
      1. Be sure to explain what a Call Option is.
      2. Be sure to incorporate the cost of the Call Option in your analysis.
   2. A Put Option
      1. Be sure to explain what a Put Option is.
      2. Be sure to incorporate the cost of the Put Option in your analysis.

Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information:

She received $128,000 in salary.

She received $16,000 of dividend income.

She received $8,800 of interest income on Home Depot bonds.

She received $22,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $5,600.

She received $9,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $6,200.

Mary receives one exemption ($4,000), and she has allowable itemized deductions of $7,500. These amounts will be deducted from her gross income to determine her taxable income.

Assume that her tax rates are based on Table 3.5. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.

Open spreadsheet

What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations.

$

What is her marginal tax rate? Round your answer to 1 decimal place.

%

What is her average tax rate? Round your answer to 2 decimal places.

%

Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information: She received $105,000 in salary. She received $16,500 of dividend income. She received $6,800 of interest income on Home Depot bonds. She received $21,000 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $5,100. She received $13,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $7,700. Mary receives one exemption ($4,000), and she has allowable itemized deductions of $7,500. These amounts will be deducted from her gross income to determine her taxable income. Assume that her tax rates are based on Table 3.5. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.

What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations.

What is her marginal tax rate? Round your answer to 1 decimal place. 28%

What is her average tax rate? Round your answer to 2 decimal places.

Suppose that A is an individual investor and OL represents other investors. All the investors who hold short positions are denoted by SH.

Currently, A holds 2,000 contracts long and OL holds 4,200 long contracts.

Starting with the current holdings, determine the holdings of A, OL, SH, as well as the volume and the Open Interest after each of the following transactions and the end result:

Day 0. Current holdings.

Day 1. A shorts 500 contracts and OL longs 500 contracts

Day 2. A longs 700 contracts and OL shorts 700 contracts

Day 3. A longs 200 contracts and SH shorts 200 contracts

Day 4. A shorts 800 contracts and SH longs 800 contracts

Suppose that A is an individual investor and OL represents other investors. All the investors who hold short positions are denoted by SH.

Currently, A holds 2,000 contracts long and OL holds 4,200 long contracts.

Starting with the current holdings, determine the holdings of A, OL, SH, as well as the volume and the Open Interest after each of the following transactions and the end result:

Day 0. Current holdings.

Day 1. A shorts 500 contracts and OL longs 500 contracts

Day 2. A longs 700 contracts and OL shorts 700 contracts

Day 3. A longs 200 contracts and SH shorts 200 contracts

Day 4. A shorts 800 contracts and SH longs 800 contracts

Suppose that A is an individual investor and OL represents other investors. All the investors who hold short positions are denoted by SH.

Currently, A holds 2,000 contracts long and OL holds 4,200 long contracts.

Starting with the current holdings, determine the holdings of A, OL, SH, as well as the volume and the Open Interest after each of the following transactions and the end result:

Day 0. Current holdings.

Day 1. A shorts 500 contracts and OL longs 500 contracts

Day 2. A longs 700 contracts and OL shorts 700 contracts

Day 3. A longs 200 contracts and SH shorts 200 contracts

Day 4. A shorts 800 contracts and SH longs 800 contracts

Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information:

• She received $88,000 in salary.
• She received $20,000 of dividend income.
• She received $6,300 of interest income on Home Depot bonds.
• She received $24,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $6,100.
• She received $14,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $7,800.
• Mary receives one exemption ($4,000), and she has allowable itemized deductions of $7,500. These amounts will be deducted from her gross income to determine her taxable income.

1. What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations.

   $

2. What is her marginal tax rate? Round your answer to 1 decimal place.

   %

3. What is her average tax rate? Round your answer to 2 decimal places.

   %

Kirk is a bright individual who is being groomed for the Controller’s position in a medium-sized manufacturing firm. After his first year as Assistant Controller, the officers of the firm were starting to include him in major company functions. For instance, today he was attending the monthly financial statement summary given at a prestigious consulting firm. During the meeting, Kirk was intrigued at how all the financial data he had been accumulating was transformed by the consultant into revealing charts and graphs. Kirk was generally optimistic about the session and the company’s future until the consultant started talking about the new manufacturing plant the company was adding to the current location and the costs per unit of the chemically plated products it produced. At that time, Bob (the President) and John (the chemical engineer) started talking about waste treatment and disposal problems. John mentioned that the current waste facilities were not adequate to handle the waste products that would be created by the “ultramodern” new plant in a manner that would meet the industry's fairly high standards, although they could still comply with federal standards. Kirk’s boss, Henry, noted that the estimated cost per unit would be increased if the waste treatment facilities were upgraded according to recent industry standards. While industry standards are presently more stringent than federal regulations, environmentalists are strongly pressuring for more stringent regulations at the federal level. Bob mentioned that since their closest competitor did not have the waste treatment facilities that already existed at their firm, he was not in favor of further expenditure in this area. Most managers at this meeting resoundingly agreed with Bob, and business continued on to another topic. Kirk did not hear a word during the rest of the meeting. He kept wondering how the company could possibly have such a casual attitude toward the environment. Yet he did not know if, how, or when he could share his opinion. Soon he started reflecting on whether this was the right firm for him. What should Kirk do? Putting Corporate Responsibility first, but recognizing the politics at play, what is the most ethical thing to do? The most practical? What strategy would you suggest to Kirk if he came to you for advice?