Other things equal they prefer to pay more for stocks that are more risky and have uncertain cash flows. • Investors are risk averse. Other things equal they prefer to pay more for stocks that are less risky and that have relatively certain cash flows than other stocks. When determining the value of a firm, which of the following statements is ture? • A financial asset is considered to have value if it has the ability to generate positive cash flows.
Being that these types of assets are From significant parts of savings, this is a logical argument. 1982 to 1989, the Dow Jones Average went from 884 to 2,509 which drastically increased capital assets’ values. There was an impressive drop in the unemployment rate during Reagan’s administration as well. 17 million new jobs were created and the unemployment rate fell from 9.7% to 5.5% by the time Reagan’s presidential term ended (Niskanen & Moore 1996). The hours worked by working aged adults grew during
Inequalities begins with where you were born. Access to affordable housing, good school and colleges, quality health services and employment opportunities can all substantially reduce inequality. But if these basic services are not available or affordable, then inequality increases. Income inequality: Income inequality in Australia has risen through the 1980s and 90s. The income of the top 25 per cent of Australians increased more rapidly than for the remaining 75 per cent.
1. Economists Neumark and Nizalova found people in their 20’s worked less and earned less when exposed to long term minimum wage employment (Henderson, 2006, No. 550). 2. Increased minimum wage for teens without a high school diploma was responsible for over 114,000 fewer employed teens (Even, 2010, p. A15).
Patent systems prevent copyright on products e.g. the HIV drug is copyrighted and remains at a too high price for people in need to access it but costs little to make. At the end of 2000, there were 36.1 million people living with HIV/AIDs in the world. More than 95% of them lived in the developing world and it is estimated 800 people die from it each day. Most political decisions are made on a national or global scale and can prevent the access of some technology to particular places.
He shows that the real income of the bottom 90 percent of American taxpayers eanred $27,060 in 1979, $25,646 in 2005, which tells us that though our economy has been growing, most of us have relatively little to show for it. And this has happened across the globe.
Have we ever had a middle class or poor president? It turns out we have, and some that have even gone bankrupt. After adjusting for inflation, the two wealthiest presidents in American history where George Washington and John F. Kennedy. Washington was worth over a half a billion dollars in today`s money. And his presidential salary was much higher than later presidents, totaling 2 percent of the U.S. budget for 1789.
According to Iceland, “The poorest 20% of the global population has not benefited much from general improvements. Of the world’s population living in developing and transition economies, 2.8 billion, or almost half, live on less than $2 a day.” There has been an extreme measure of poverty throughout the world that has lead to material and income deprivation across several regions. Sadly among the wealth nation in the world, the United States has a greater proportion of people who are poor. The United States having the highest GNP per capita in the world, at $26,400, has higher levels of both absolute and relative poverty than other rich countries in Northern and Western Europe. This reflects inequality and an uneven distribution (both factors that attribute to poverty) of wealth in
There is less opportunity of jobs than before. If immigrants become citizens it would mean more people looking for jobs. Despite the improving economy, we still have millions of citizens out of work. Whether it's lack of skills or lack of opportunities, many of those citizens will be forced to take the low-paying unskilled jobs. If you pump in millions of new workers seeking jobs, it decreases the amount of work available.
Most of the things these immigrants do in the U.S. is illegal; avoid taxes, work illegally, live illegally, etc. The biggest problem with them is that a majority of them do not pay taxes. Households with an illegal immigrant as the head of the house only pay 1/3 of the federal taxes, or ¼ as much as a legal household. The debt that illegal immigrants cause to the economy is far greater than the good they do. As Steven A. Camarota tells in The High Cost of Cheap Labor: Illegal Immigration and the Federal Budget, “Households headed by illegal aliens imposed more than $26.3 billion in costs on the federal government in 2002 and paid only $16 billion in taxes.