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1. AJ Imperial is a self-employed professional who offers accounting and business management services. Her total gross receipts amounted to 3,500,000.00 for taxable year 2020. Her recorded cost of service and operating expenses were 1,200,000.00 and 800,000.00 respectively. How will you compute for AJ's tax liability? How much is her gross income, taxable income and graduated income tax due for the year?
1. Dan Tamago is an employee of Itnok Poultry Farm who earns at a minimum. His total compensation income for 2020 amounted to 180,000.00. Tamago contributed 8,100.00 for his SSS, 900.00 for Philhealth and 3,600 for PAG-IBIG. On December 15, he received his 13th month pay at 15,000.00 which is equivalent to his basic monthly salary. How do you classify Mr. Tamago as a taxpayer? How will you compute for his taxable income and how much is the income tax due him?
1. Dominique Taus is a resident Filipino cetizen. She is employed in a multi-national company and a 3-month business trip in Singapore during the taxable year. Aside from her basic salary, she received additional pay while on trip. How will you classify Taus as a taxpayer? How shall she be taxed?
Suppose that you are the economic advisor to the President of Djibouti. As per
your assessment the country’s exchange rate falls too low. As a result you
recommend Djibouti to reduce its budget deficit in order to raise the exchange
rate.
Use the long-run model of a small open economy (assuming Djibouti as a
Small Open Economy (SEO)) to illustrate graphically the impact of
reducing the government's budget deficit on the exchange rate and the
trade balance. Be sure to label:
i. the axes
ii. the curves
iii. the initial equilibrium values
iv. the direction the curves shift
v. the new long-run equilibrium values.
b. Based on your graphical analysis, explain whether your policy
recommendation will work. Specifically state what happens to the exchange
rate and the trade balance as a result of the government budget deficit
reduction
The utility from wealth (𝑤) for an individual is given by 𝑢(𝑤) = √𝑤. The individual owns a risky asset that is equally likely to yield either Rs. 400 or Rs. 900. The risk premium of the asset (in Rs.) is
You were planning to spend Saturday working at your part-time job, but a friend asks you to go for picnic. What is the true cost of going to picnic? Now suppose you had been planning to spend the day studying at the library. What is the cost of going to picnic in this case?
What is the relationship between the neoclassical theory of investiment and the way firms make their investiment decisions in practice?
Why measuring price, income, cross and advertisement elasticities of demand for an insurance product is good for the growth of the sector? Use supply and demand curve to illustrate how each of the following events would effect the price/ or premium in quantity of a private health insurance policy (a) if you get benefits under swathya bema yojna of the state government? (b) a decrease in your average income level during pendamic (c) if policy premium are expected to increse in coming future and (d) if more tax benefit are provided for taking this policy?
Analyze the impact of insurance sector on gross domestic product (GDP) and financial help of an economy. Also explain why focusing simply on GDP can be harmful for economic development of a country?
Which competative markets can use price descrimination as a pricing strategy and why? In what ways three degress of price discrimination are different from each other? How can insurance industry use this price in extracting surpluses from consumers?
