Market failure refers to a situation in which the market does not allocate resources efficiently. ANSWER: T TYPE: T KEY1: D SECTION: 2 OBJECTIVE: 7 RANDOM: Y [cxxii]. Since taxes affect only the price paid by the buyer, they cannot have an adverse impact on the allocation of society’s resources. ANSWER: F TYPE: T KEY1: C SECTION: 2 OBJECTIVE: 7 RANDOM: Y [cxxiii]. A monopolist has market power.
These statements now may be used in evaluating the performance of Lee College. Evaluating the performance and financial position for not-for-profit organizations and governments is difficult because they vary greatly in size. Their relative performance based on gross amounts reported in the financial statements does not provide a clear picture and in order to facilitate comparisons; many that use the financial statements often calculate ratios. The most commonly used measure of not-for-profit efficiency is the program expense ratio. This ratio is calculated by taking a total of the program expenses and dividing by the total expenses for an organization.
Another con is preparation time and expense of the financial plan is amplified. Last con is sometimes zero-based budgeting sounds too drastic and so consensus is hard to
For an article, material, or supply to be considered domestic it must be an unmanufactured end product mined or produced in the United States; or the end product is manufactured in the United States. The purpose of this Act is to discourage businesses to sell to the government foreign products. When the government is only buying American made products it is encouraging the American business to produce a product that meets the government needs with pricing and quality. Some of the problems also with purchasing material from overseas vendors is that the required items might contain chemicals that do not meet American standards such as we have seen in some of China’s material containing lead. Now there are some exceptions to the Buy American Act which include if the items are being used outside the United States; domestic items that are unreasonably priced; information technology that is a commercial item; when compliance to the Act would not be in the best interest of the government; and item purchased only for the commissary resale.
Stockman finds these banks “too big to exist.” Ryan believes the taxpayer’s money deposit should be handled by the states not the federal. Stockman disagrees, he finds it to difficult to manage internally and externally; he believes the bank should broken up by a higher authority. He thinks it would be better if Ryan looked back to the times of restoration of “Glass-Steagall, Depression-era legislation that that separated commercial and investment banking.” Stockman brings up the ideal way to reduce or eliminate Social insurance benefits. He strongly believes the government should make changes on the income based eligibility test to reduce or eliminate the need to give Social insurance to millions of people. This would avoid tax increase issue.
Many customers ask the question, “What affects prices?” We learn that things happen beyond the sellers’ and buyers’ control to raise and lower prices in today’s market. This change may be due to weather conditions, new transportation options, or an increase in the demand for a product or service. Oil companies are a prime example of the affects in pricing, and adjusting the prices of gasoline as supply and demand change. The government has many ways to affect prices, by taxes and subsidies, which lead us into the next chapter. How do you fix the prices?
Summary As the chapter title suggests, Dr. Roy Spencer discusses the role that government assumes in the United States economy. In his opening remarks Dr. Spencer affirms his intentions to the reader in the statements, “I am not going to address what constitutes the” proper role of government”. “What I am interested in is the extent to which government helps or hurts our efforts to achieve the goal of people providing as many goods and services as possible to each other that we want and need.” There are several methods of government intervention which Dr. Spencer chooses to discuss in this chapter. These methods are as follows: raising tax rates, printing money, subsidies, jobs programs, economic stimulus, rebuilding after disaster, low interest loans, wage controls, and price controls. While at a glance each of these programs may seem harmless, Dr. Spencer illustrates why he believes America’s economy is declining because of the current system.
Week One Discussion Questions • What are the purposes of a personal budget, balance sheet, and statement of cash flow? The purpose of a personal budget, balance sheet and statement of cash flow is to give a full picture of ones finances. Being oblivious to where ones money is actually going can cause stress which is small compared to the more severe instance of leading to bankruptcy because of a failure to properly manage money. • The Internal Revenue Code (IRC) is the supreme source of income tax law. When trying to resolve an income tax question, a tax practitioner will look to other sources in addition to the IRC.
Federal Reserve Paper ECO/212 May 14, 2012 Dr. Mohamed El-Kaissy This paper has the purpose to cover the many topics and aspects of the Federal Reserve as it pertains to monetary policy. The fact that monetary policy can have an indirect effect on the economy is a crucial and valid point. The beginning of the paper talks about the functionality of money and its purpose in government. The analysis will go onto explore the tools that the banking system has at its disposal and give examples as to how their use affects the monetary system. The Federal Reserve has the ability to create many avenues of economic power with just a minimal amount of resources, however; these minimal amounts of resources are very powerful.
As of June 28 2012 the Supreme Court ruled that basically if a person doesn’t buy health insurance then the fee is counted as a tax. The Obama administration tried to argue against the ruling stating that the fee should just count as a penalty instead of a tax. The Supreme Court didn’t agree with the Obama Administration so they turned the decision down. Chief Justice John Roberts believes that the payment of health insurance is not that high so it should be no choice but to get it. Also the payments are collected by the IRS through taxation.