After superstorm sandy in 2012, the government offered subsidies to people whose houses were destroyed. how does the expectation that subsidies will be offered again for future disasters affect the probability that risk-averse people will buy insurance and the amount they buy? for example, assume there is a 3% chance of a hurricane that will completely destroy a home worth $200 comma 000. assume government subsidies will fully replace the value of homes destroyed by a hurricane. the expectation that subsidies will be offered again by the government to replace the value of homes destroyed by hurricanes will result in people a. buying the same amount of insurance because the subsidy does not affect the price of insurance. b. buying more insurance because the subsidy is received regardless of whether there is a hurricane. c. buying less insurance because the subsidy is at least partially insuring. d. buying more insurance because homeowners have more wealth with the subsidy. e. buying the same amount of insurance because the subsidy is only received when there is a hurricane.

9. tax types: taxes are classified based on whether they are applied directly to income, called direct taxes, or to some other measurable performance characteristic of the firm, called indirect taxes. identify each of the following as a “direct tax,” an “indirect tax,” or something else: a. corporate income tax paid by a japanese subsidiary on its operating income b. royalties paid to saudi arabia for oil extracted and shipped to world markets c. interest received by a u.s. parent on bank deposits held in london d. interest received by a u.s. parent on a loan to a subsidiary in mexico e. principal repayment received by u.s. parent from belgium on a loan to a wholly owned subsidiary in belgium f. excise tax paid on cigarettes manufactured and sold within the united states g. property taxes paid on the corporate headquarters building in seattle h. a direct contribution to the international committee of the red cross for refugee relief i. deferred income tax, shown as a deduction on the u.s. parent’s consolidated income tax j. withholding taxes withheld by germany on dividends paid to a united kingdom parent corporation

How many months does the federal budget usually take to prepare

Penelope summers received certain income benefits in 2018. she received $1,400 of state unemployment insurance benefits, $2,000 from a federal unemployment trust fund and $3,700 workers’ compensation received for an occupational injury. what amount of the compensation must penelope include in her income