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How were the deregulation of the oil industry and a windfall profits tax on oil companies in direct conflict with each other?
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What is an definition windfall?
The official definition of the word windfall is "a piece of unexpected good fortune, typically one that involves receiving a large amount of money."
Is pocket money of a child is National income?
Pocket money given from a parents income is National Income other than money earned by windfall lottery,gambling,transfer income as gift, old age pension from government,scholarship,donations,sale of second hand equipment,commission on sales of second hand goods.
Is a free market the ideal system for distributing scarce resources?
The "invisible hand" of free markets is the best system possible for distributing scarce resources since the battle between supply and demand is arbitrated by the pricing mechanism between producers and consumers. The argument against allowing the free market to operate to distribute scarce resources is that it allows windfall profits for producers and may wind up pricing some consumers completely out of the market. Despite the potential unfairness of a free market allocation of goods, real world experience has provided many examples of the pitfalls of curbing free markets through government imposed price controls or rationing. Under the most extreme circumstances if the pricing of scarce goods is set at a level below the cost of production and distribution, goods will soon disappear completely from the marketplace since producers would soon go out of business if forced to sell their goods at a price far below the cost of production. Under this scenario, even those able to pay for expensive goods would not be able to acquire them since they would simply not be available. A more likely scenario that usually develops under price controls and rationing is the emergence of a black market in which goods can be easily acquired but at a much higher price point than that set by price controls. Black markets can also be viewed as unfair since only those with sufficient resources would be able to purchase scarce items. Another advantage of free markets is that while prices may soar temporarily for certain scarce goods in high demand, the high profits of companies producing such goods will be a powerful inducement for other companies to begin producing those goods and over time supply will increase and prices will revert to normal levels. Free markets may not be the perfect solution in the short term but have proven to be the best long term generator of national wealth, job creation, and goods production.
Differentiaite between normal and supernormal profit?
Profit is the reward for entrepreneurial function. Gross profits are the surplus revenue over and above explicit costs. Net profit is the excess of gross profit over explicit and implicit cost. Gross profit contains pure economic profit which arise unforeseen changes in our dynamic economy, causing risk and uncertainty for the entrepreneur, innovations introduced by the entrepreneur and monopoly power enjoyed by the entrepreneur. Thus Gross profits = Total revenue - Total explicit costs. Pure Profit = Gross profit - Implicit cost - Total revenue (Explicit cost + Implicit costs) - depreciation.Normal profits and Supernormal profits:-The distinction between normal profit and super normal profits play an important role in economic theory. Normal profit is the reward of entrepreneurial effort. Normal profits are define as the minimum income that an entrepreneur must earn in order, to induce him to remain in the current business or industry, if the entrepreneur does not get this basic minimum he will not production.This profit is a fixed amount which is included in the cost of production. Normal profit gets distributed over the large volume of output. Normal profit is thus an incentive to produce output.This profit arises due to the function of the entrepreneur at this profit no existing firms leave the industry nor any new enter the business. The firm or the producer neither expands nor contracts business at this normal profit. Normal profit accrues to a firm in the long period. This long period profit is more for less stable and almost remains constant Normal profit can be expressed in terms of transfer costs. The entrepreneur has certain factors and services of his own which he utilizes in his business. These factors like capital, land and managerially service would have earned him certain amount of remuneration if they had been utilized in other's business.Thus the reward of these factors like interest, wage and rent which never receives constitutes the transfer earnings or opportunity cost of the above self-owned factors. Thus the normal profits of an entrepreneur are the above opportunity cost of the self-owned factors. These transfer earnings must be earned by him if he is to stay in the current business or industry.Supernormal profits are the profits earned by the entrepreneur in excess of normal profits which form a part of the cost of production. Supernormal profit or otherwise called abnormal profit arises due to risks and uncertainty bearing in the business. It also arises because of monopoly advantage and chance factors. According to Hawley an entrepreneur earns abnormal profit because of risks in the business. Abnormal profit arises on account of non- insurable risks. Non insurable risks are not predictable. There risks can not be known beforehand.If the entrepreneur successfully tides over the risks involved in the business, he wills gane huge profit. This profit arises over the normal profit. Normal profit arises an account of insurable risks. According F.H Knight Profit arises because of the uncertainty conditions in the business. Production is carried on the basis of future anticipation. Goods are produced and sold in the market.There is a big gap between production and sale. Within this gap period many things change that may upset the anticipation. The demand may decline over night. Thus he may incur loss. But if his anticipation comes true, he will earn windfall profit.Abnormal profit arises because of the introduction of innovation. An entrepreneur earns constant windfall profit so long as the same innovation is not introduced by others. Abnormal profits disappear when the innovation is universalized. Chance factors also fetch abnormal profit. No amount of human effort is made to earn this abnormal profit. Abnormal profit arising out of chance factors is short-lived. On account of natural calamity agricultural production suffers. Supply falls short of demand. Prices of output rise there by giving rise to profit.Such calamity is temporary and happens frequently. Abnormal profit also arises due to the nature of market. Under monopoly abnormal profit emerges because of the entrepreneurs' exclusive power on the production. The entries of others are strictly prohibited.The monopolist increase. The price by reducing his output. The given rise huge profit. This profit is earned exclusively for monopoly advantage. This abnormal, profit is the profit that arises over and above the normal profit. Abnormal profits are earned without entrepreneurial effort.
What was the panic of 1853?
These government land sales, coupled with the Tariff of 1833, brought huge amounts of money into the Treasury's coffers. In 1835, the government was able to pay off the national debt-one of the fondest dreams of President Andrew Jackson. For one of the few times in American history, the Treasury rapidly began to accumulate a surplus. Members of Congress responded to pressures from home and passed a measure distributing the surplus to the states. The windfall was quickly invested in further internal improvement projects-more railroads and canals. Most state governments, as well as many individuals, preferred to hoard specie (gold and silver) and to discharge debts with paper bank notes. Jackson became alarmed by the growing influx of state bank notes being used to pay for public land purchases and, in 1836 shortly before leaving office, issued the Specie Circular. This order commanded the Treasury to no longer accept paper notes as payment for such sales. Westerners were dismayed by this action, and a major bank crisis awaited the incoming administration of Martin Van Buren, in early 1837. Banks restricted credit and called in loans. Depositors rushed to their local institutions and attempted to withdraw their funds. Unemployment soon touched every part of the nation and food riots occurred in a number of large cities. Construction companies were unable to meet their obligations, sparking the failure of railroad and canal projects, and the ruin of thousands of land speculators. Van Buren was philosophically opposed to direct government action in combating the nation's economic ills, a position that probably cost him reelection in 1840. The Whigs, however, capitalized on the misery, electing William Henry Harrison as their first president. The impact of the depression, however, lingered until 1843. The Panic of 1837 was a financial crisis in which banks closed and the credit system collapsed.
Where is the Windfall Branch in Windfall located?
The address of the Windfall Branch is: 109 Mccellan Street, Windfall, 46076 0487
What is the phone number of the Windfall Branch in Windfall?
The phone number of the Windfall Branch is: 765-945-7655.
When was Windfall in Athens created?
Windfall in Athens was created in 1954.
When was The Windfall Varietal created?
The Windfall Varietal was created in 2000.
When was The Poet's Windfall created?
The Poet's Windfall was created in 1918.
When did Windfall Records end?
Windfall Records ended in 1974.
When was Windfall Records created?
Windfall Records was created in 1969.
When was Windfall - novel - created?
Windfall - novel - was created in 1982.
How many pages does Windfall - novel - have?
Windfall - novel - has 318 pages.
What is the duration of Windfall in Athens?
The duration of Windfall in Athens is 1.58 hours.
What are the latest updates on the Social Security Windfall Act?
what is status of windfall bill
What is a sentence using words windfall?
Winning the money in the lottery was an unexpected windfall.
