3.5 Chapter Figures 1) The figure above shows a production possibilities frontier. In the figure, which of the following combinations of the two goods cannot be produced with the current resources and technology? A) 2 million cell phones and 13 million DVDs B) 4 million cell phones and 4 million DVDs C) 1 million cell phones and 14 million DVDs D) 3 […]
91) If demand is price inelastic and the price is lowered, which of the following occurs? A) The quantity sold decreases. B) The total expenditure increases and the total revenue decreases. C) The total revenue of the firms selling the product is unchanged. D) The total revenue of the firms selling the product decreases. E) The total expenditure decreases and the total revenue increases. […]
73) A competitive market is in equilibrium. Then there is an increase in demand and an increase in supply. The equilibrium price ________, and the equilibrium quantity ________. A) rises; increases B) perhaps changes but we can’t say if it rises, falls, or stays the same; does not change C) falls; increases D) perhaps changes but we can’t say if it rises, falls, or […]
51) Competition in the political marketplace can result in the efficient provision of a public good if A) there is only one political party. B) voters’ preferences are unknown. C) benefits are small. D) voters are well informed and evaluate the alternatives. E) politicians need to be elected by majority votes. 52) Which of the following can bring about an efficient level of […]
4.1 Demand 1) A market is defined as A) a physical place where people buy only goods. B) a physical place where people buy both goods and services. C) a store where people buy physical goods. D) any arrangement that brings buyers and sellers together. E) a place where one good is bartered for another. 2) EBay A) will be considered a market when […]
51.RefertoFigure8-21.Supposethegovernmentplacesa$3per-unittaxonthisgood.Thesmallestdeadweightlossfromthetaxwouldoccurinamarketwheredemandisrepresentedby a.Demand1,andsupplyisrepresentedbySupply1. b.Demand1,andsupplyisrepresentedbySupply2. c.Demand2,andsupplyisrepresentedbySupply1. d.Demand2,andsupplyisrepresentedbySupply2. 52.RefertoFigure8-21.SupposethemarketisrepresentedbyDemand1andSupply1.Atfirstthegovernmentplacesa$3per-unittaxonthisgood.Thenthegovernmentdecidestoraisethetaxto$6perunit.Comparedtotheoriginaltaxrate,thehighertaxwill a.increasetaxrevenueandincreasethedeadweightlossfromthetax. b.notchangetaxrevenueandincreasethedeadweightlossfromthetax. c.decreasetaxrevenueandincreasethedeadweightlossfromthetax. d.decreasetaxrevenueanddecreasethedeadweightlossfromthetax. 53.RefertoFigure8-21.SupposethemarketisrepresentedbyDemand1andSupply1.Atfirstthegovernmentplacesa$3per-unittaxonthisgood.Thenthegovernmentdecidestoraisethetaxto$6perunit.Howwouldyoucharacterizethedecisiontoraisethetaxratefrom$3to$6perunit?The decisionis a.agoodonebecauseitincreasestaxrevenuewhiledecreasingthedeadweightlossfromthetax. b.abadonebecauseitdoesnotincreasetaxrevenueyetincreasesthedeadweightlossfromthetax. c.abadonebecauseitdecreasestaxrevenuewhileincreasingthedeadweightlossfromthetax. d.unclearbecauseitincreasestaxrevenueyetalsoincreasesthedeadweightlossfromthetax. Figure8-22 54.RefertoFigure8-22.Supposethegovernmentchangedtheper-unittaxonthisgoodfrom$3.00to$1.50.Comparedtotheoriginaltaxrate,thislowertaxratewould a.increasetaxrevenueandincreasethedeadweightlossfromthetax. b.increasetaxrevenueanddecreasethedeadweightlossfromthetax. c.decreasetaxrevenueandincreasethedeadweightlossfromthetax. d.decreasetaxrevenueanddecreasethedeadweightlossfromthetax. 55.RefertoFigure8-22.Supposethegovernmentchangedtheper-unittaxfrom$3.00to$4.50.Comparedtotheoriginaltaxrate,thishighertaxratewould a.increasetaxrevenueandincreasethedeadweightlossfromthetax. b.increasetaxrevenueanddecreasethedeadweightlossfromthetax. c.decreasetaxrevenueandincreasethedeadweightlossfromthetax. d.decreasetaxrevenueanddecreasethedeadweightlossfromthetax. 56.RefertoFigure8-22.Supposethegovernmentinitiallyimposesa$3per-unittaxonthisgood.Nowsupposethegovernmentisdecidingwhethertolowerthetaxto$1.50orraiseitto$4.50.Whichofthefollowingstatementsiscorrect? a.Comparedtotheoriginaltax,thesmallertaxwilldecreasebothtaxrevenueanddeadweightloss. b.Comparedtotheoriginaltax,thelargertaxwillincreasebothtaxrevenueanddeadweightloss. c.Comparedtotheoriginaltax,thelargertaxwilldecreasetaxrevenueandincreasedeadweightloss. d.Bothaandbarecorrect. 57.RefertoFigure8-22.Supposethegovernmentinitiallyimposesa$3per-unittaxonthisgood.Nowsupposethegovernmentisdecidingwhethertolowerthetaxto$1.50orraiseitto$4.50.Whichofthefollowingstatementsisnotcorrect? a.Comparedtotheoriginaltax,thelargertaxwilldecreasetaxrevenue. b.Comparedtotheoriginaltax,thesmallertaxwilldecreasedeadweightloss. c.Comparedtotheoriginaltax,thesmallertaxwilldecreasetaxrevenue. d.Comparedtotheoriginaltax,thelargertaxwillincreasedeadweightloss. 58.RefertoFigure8-22.Supposethegovernmentinitiallyimposesa$3per-unittaxonthisgood.Nowsupposethegovernmentisdecidingwhethertolowerthetaxto$1.50orraiseitto$4.50.Whichofthefollowingstatementsisnotcorrect? a.Comparedtotheoriginaltax,thelargertaxwilldecreasetaxrevenue. b.Comparedtotheoriginaltax,thesmallertaxwilldecreasedeadweightloss. c.Comparedtotheoriginaltax,thesmallertaxwilldecreasetaxrevenue. d.Comparedtotheoriginaltax,thelargertaxwillincreasedeadweightloss. Figure8-23.Thefigurerepresentstherelationshipbetweenthesizeofataxandthetaxrevenueraisedbythattax. 59.RefertoFigure8-23.Thecurvethatisshownonthefigureiscalledthe a.deadweight-losscurve. b.tax-incidencecurve. c.Laffercurve. d.Lorenzcurve. 60.RefertoFigure8-23.IftheeconomyisatpointAonthecurve,thenasmallincreaseinthetaxratewill a.increasethedeadweightlossofthetaxandincreasetaxrevenue. b.increasethedeadweightlossofthetaxanddecreasetaxrevenue. c.decreasethedeadweightlossofthetaxandincreasetaxrevenue. d.decreasethedeadweightlossofthetaxanddecreasetaxrevenue.
71) The above figure shows the supply curves in four different markets. If each of the markets has an identical downward sloping demand curve and the same tax is levied on suppliers, which market would produce the smallest amount of deadweight loss? A) A B) B C) C D) D E) A and D 72) The above figure shows the supply […]
41.Liquid formulas that have been introduced as “meal replacers” have been shown to: a.be useful as supplements for adults whose diets are adequate but not varied. b.help support growth and health without medical complications in severely ill patients. c.be better than a diet of real foods for many people because of their food choices. d.have a limited use that is lifesaving for hospitalized […]
61.Which of the following is likely to increase the amount budgeted for depreciation in the manufacturing overhead budget? A.Sale of production equipment at a loss B.Increased variable costs related to estimated increases in sales C.Planned acquisitions of new equipment D.A decrease in the number of units to be produced 62.Which of the following is a reason the amount of cash paid out […]
11) Suppose the labor force stays constant, and the working-age population stays constant, but a greater number of persons who were unemployed become employed. The labor force participation rate will A) increase. B) decrease. C) remain constant. D) not change in a way that can be predicted. 12) The unemployment rate equals the number of unemployed divided by the ________, all times 100. A) […]
MATH125: Unit 4 Assignment Answer Form
Cash Conundrums: Financial Literacy
Assignment Instructions
For this assignment, you will create a personal budget and compare it to the 50/30/20 budgeting strategy.
1. Answer ALL questions below regarding creating a budget.
2. Show ALL step-by-step calculations, and round all of your final answers correctly to the whole number. All
monetary answers should be rounded to the nearest dollar.
3. For full credit, write all explanations in the spaces provided.
4. Enter your answers in the space provided in this document, and submit to the appropriate area. Scanned or
handwritten work will not be accepted.
5. If you need assistance, please contact your course instructor.
Creating a Budget
You will create a personal budget based on your current salary, or based on your state’s median salary. You will create a
personal budget based one of the following: (1) your current salary, OR (2) your state’s median salary. Review the
median income information on this site.
Step 1 (6 points)
Determine your monthly net income (known as your monthly take-home pay). Your take-home pay is your gross pay
(Box B) minus taxes, Social Security, and benefits, including health insurance if provided. A realistic amount would be
10-30% less than your gross monthly wages).
Income
A. Annual
salary
(Base this one of
the following:
(1) your current
salary,
OR
(2) your state’s
median salary)
B. Gross monthly
salary/wages
(Annual salary divided by
12):
$ C. Monthly take-
home pay
(This is the monthly
gross pay listed in Box B
minus FICA, taxes, Social
Security, and health
insurance):
$
Step 2: The 50/30/20 Strategy and Monthly Expenses (10 points)
Review the information at this link on the 50/30/20 budgeting strategy.
Think about each of these categories. Calculate your monthly expenses for each category below, and complete the
following table. It might help you to think about items on a weekly basis and then multiply by 4 to calculate a monthly
budget amount.
Remember, if you are not comfortable with sharing real numbers, you can do this as a hypothetical experience with
realistic estimates.
Budgeted
Category
Examples Budgeted
Amount
Housing Rent or mortgage payment $
Food Groceries, lunches, coffees, dinners out, etc. $
Transportation Gas, auto care, parking, tolls, etc. $
Basic utilities Phone, electricity, water, Internet, etc. $
Insurance Health, auto, home, and life insurance $
Child care Day care, babysitting, college tuition, etc. $
Travel Airfare, hotels $
Entertainment Sporting events, dinners out, movies, and memberships $
Personal care Haircuts, massages, etc. $
Savings General savings, saving for car, college, wedding, etc. $
Other $
Step 3: Categorizing Needs, Wants & Savings (15 points)
Based on the 50/30/20 strategy, expenses can be needs or wants. However, some categories may not easily fit in with
needs or wants. For example, daycare may be a need, but babysitting for date night may be a want. For each category,
break down the total budgeted (in Step 2 above) into needs and wants.
Budgeted Category Budgeted
Amount
(Step 3)
Amount
toward Need
Amount
toward Want
Housing $ $ $
Food $ $ $
Transportation $ $ $
Basic Utilities $ $ $
Insurance $ $ $
Child care $ $ $
Travel $ $ $
Entertainment $ $ $
Personal Care $ $ $
Savings $
Other $ $ $
Step 4: Calculation of Needs, Wants & Savings (12 points)
Sum your category totals below:
Transfer those subtotals for the categories in the following table.
Sub-Total
Needs $
Wants $
Savings $
Step 5: Percentage of Wants, Needs & Savings (12 points)
Calculate the percentage of your budget assigned to needs, wants, and savings below.
Use the amount from each category in Step 4 and divide it by your monthly take-home pay (Box C in Step 1) salary. Then
multiply that result by 100 to calculate the percent.
Note: Your percentages may not match a 50/30/20 budget.
Sub Totals
from Step 4
Monthly
Salary
from Step 1c
Percent
Needs $ $ %
Wants $ $ %
Savings $ $ %
Step 6: Reflection on the 50/30/20 Method (15 points)
Write a 100-word reflection comparing your percentages to the 50/30/20 method. How well do you feel your budget
aligns with the 50/30/20 method? What might you need to change in your budget?
Step 6 Answer (100 words)
References
NerdWallet. (2019. December 18). 50/30/20 budget calculator. Retrieved from
https://www.nerdwallet.com/blog/finance/nerdwallet-budget-calculator/
World Population Review. (n.d.). Median household income by state 2020. Retrieved from
https://worldpopulationreview.com/states/median-household-income-by-state/
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more