Y enterprises sells is product at Rs. 20 per unit. Variable costs are Pa 15 per st (2/3
manufacturing and 1/3non manufacturing). Fxed costs are incurred uniformly throughout the year and amount to Rs.750,000 (2/3 mamufacturing and 1/3 non-mammfactaring
Required:
a) The number of units that must be sold to carn an after-tax income of Ra. 100,000
assume income tax rate of 20%). Prove your answer by prepaning imcome
statement to that effect
b) Illustrate the role of changes in fiscal policies (changes in tax ates) and labor
unions (changes in structure of salaries and wages) in altering the break-even
point calculated in (a). Your answver must be supported by calculations based an
arbitrarily assumed values

This question deals with the theory of economic regulation. Imagine there are 4000 primary care physicians in the state of Lincoln. They oppose changes to scope of practice regulations currently being debated in the legislature that would bring new increased competition from non-MD providers (changes that would allow nurse practitioners to practice independently). It is expected that these changes would reduce physician incomes by $10,000 and reduce health insurance premiums by $10 for each of the state’s 4 million residents a. Discuss the impact of the policy change on the average primary care physician and resident of Lincoln and the aggregate impact on the two groups. b. Based on the theory of economic regulation what action would you expect from the state’s legislature. c. What is the purported public interest argument in favor of scope of practice regulation. Assess the validity of these concerns in this context.

Using excel, illustrate and check the following observations on bonds and interest rate sensitivity.

You can use any set of a given bond's characteristics of your choosing.

1. Prices of long-term bonds tend to be more sensitive to interest rate changes than prices of short-term bonds.

2. Bond prices' sensitivity to changes in yields increases at a decreasing rate as maturity increases.

3. Interest rate risk is inversely related to the bond's coupon rate. Prices of low-coupon bonds are more sensitive to changes in interest rates than prices of high-coupon bonds.

4. The sensitivity of a bond's price to a change in its yield to maturity is inversely related to the yield to maturity at which the bond is currently selling.

You can make up the excel macros.

Principles of Macroeconomics

Discussion: Fiscal Policy
Please respond with a minimum of 100 words

Compare and contrast the use of government spending changes versus tax changes as a means of influencing the course of the economy. Is one or the other preferable in specific situations? Imagine for a moment that you have two roommates, who each have opposing viewpoints on nearly everything, including politics and economics. Taylor is adamant that the best way to manage the economy is through tax changes, while Morgan insists that it’s better to adjust the economy through government spending. What would a Neoclassical economist say? What would a Keynesian economist say? Which roommate do you agree with, and why? Find a news article to help support your opinion. Summarize the article and include the link to in your response.

E1-12B The summaries of data from the balance sheet, income statement, and retained earnings statement for two corporations, Yeagen Corporation and Williams’ Enterprises, are presented below for 2014.

Instructions

Determine the missing amounts. Assume all changes in stockholders’ equity are due to changes in retained earnings.

Here is a break-even analysis model.

Do the following two tasks.

Recall that the Break-even point is when Profit equal zero, or Revenue minus Total Cost equals zero.

Here is the Break-even formula:

Suppose the law changes such that individuals can contribute twice as many dollars per year to their Individual Retirement Accounts and avoid paying taxes on this money until they retire. This will cause a shift in the                            [ Select ]                       ["supply of", "demand for"]         funds curve and as a result the equilibrium interest rate will                            [ Select ]                       ["increase", "decrease"]         .

Suppose the law changes and the corporate income tax rate has been cut in half. As a result we can expect a shift in the                            [ Select ]                       ["supply of", "demand for"]         funds curve and as a result the equilibrium interest rate will                            [ Select ]                       ["increase", "decrease"]         .

Suppose both of these changes happen at the same time. As a result we can expect the equilibrium interest rate to                            [ Select ]                       ["increase", "decrease", "uncertain"]         and the equilibrium quantity of funds supplied and demanded to                            [ Select ]                       ["increase", "decrease", "uncertain"]         .

Consider AD, SRAS and LRAS for the economy of country Xantron.

1.1 Suppose Xantron is having real GDP lower than $1 million in a short-run situation, compared to Xantron's potential GDP. Give an example what might have caused this kind of situation in Xantron that could be mitigated by Monetary Policy. What kind of monetary policy could be useful for the economy of Xantron to restore potential GDP? Explain short-run and long-run dynamics ( changes/shifts/movements relating to AD, SRAS, LRAS, changes in price level, output level etc. associated with this particular Monetary policy)

1.2 Suppose in a short-run situation Xantron has real GDP exceeding potential GDP by $1 million. Give an example what might have caused this kind of situation in Xantron that could be mitigated by Monetary policy. What kind of Monetary policy could be useful for the economy of Xantron to restore potential GDP? Explain short-run and long-run dynamics (changes/shifts/movements relating to AD, SRAS, LRAS, changes in price level, output levels etc. associated with this particular Monetary policy)

Using the circular flow of income model, supported by a diagram, show the effect on an economy such as the UK, of a fall in investment by British firms and a reluctance by Chinese companies to buy goods from the UK.

Word Limit: 200 words

CASE STUDY BELOW

Growth and Climate Change
Even before the Coronavirus pandemic that swept across the world in 2020 the Organisation for Economic Cooperation and Development (OECD) was already warning of a slowdown in global economic activity.
In a report published in November 2019 it argued that it was a lack of direction on global climate policy that was reducing business investment. Although it did not go as far as to predict a recession, it was pessimistic about the future for continued growth.
There are calls for action from governments to address challenges, some of which have both long term and more immediate consequences.
In relation to climate change, the OECD argued that extreme weather events such as heat waves, drought and storms could lead to disruption of economic activity and could inflict long lasting damage on people, capital and land. Economists are well aware of the negative externalities caused by economic growth and many economists have long argued that climate change presents the biggest environmental threat to economic well -being and standards of living in the future. The British economist, Nicholas Stern, referred to global climate change as the greatest ever example of market failure and that insufficient policy action could increase the costs of climate change.
Stern argued that while climate change presents a long-term challenge for governments in addressing these issues, there is no alternative but for immediate action to be taken to try and reduce these costs. Governments were unwilling to allocate resources in the short term to deal with long term problems but this was not a sensible strategy. For Stern, in order to maintain real increases in economic prosperity in the future, there is a relatively small cost that needs to be allocated to tackling the problems of climate change in the short run. The OECD report argues that there is indeed already an impact on business investment of uncertainty over climate change policy and that this is at the centre of slowing growth. For the OECD as for Stern, governments must act quickly.
"Without a clear sense of direction on carbon prices, standards and regulation, and without the necessary public investment, businesses will put off investment decisions, with dire consequences for growth and employment," the OECD said.
Among the other challenges to short term global growth that the OECD mentioned was the change in the Chinese economy. As incomes grow on average in China, it is becoming a more services-oriented economy which means the country's demand for imported goods for its industries to process, was unlikely to grow as strongly in the future. As well as this, after thirty years of rapid economic growth in China, the Chinese government was trying to manage its growth so as to prevent overheating in the economy.