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2009 Economic Stimulus Plan
The American Recovery and Reinvestment Act of 2009 is an economic stimulus package enacted in February 2009 and intended to provide a stimulus to the US economy in the wake of the economic downturn.
621 Questions
Examples of law diminishing marginal utility and indifference curve?
Consumers Equilibrium through Law of EquiMarginal Utility
The Law of Equi-Marginal Utility is an extension to the law of diminishing marginal utility. The principle of equi-marginal utility explains the behavior of a consumer in distributing his limited income among various goods and services. This law states that how a consumer allocates his money income between various goods so as to obtain maximum satisfaction.
The principle of equi-marginal utility is based on the following assumptions:
(a) The wants of a consumer remain unchanged.
(c) The prices of all goods are given and known to a consumer.
(d) He is one of the many buyers in the sense that he is powerless to alter the market price.
(e) He can spend his income in small amounts.
(f) He acts rationally in the sense that he want maximum satisfaction
(g) Utility is measured cardinally. This means that utility, or use of a good, can be expressed in terms of "units" or "utils". This utility is not only comparable but also quantifiable.
Suppose there are two goods 'x' and 'y' on which the consumer has to spend his given income. The consumer's behavior is based on two factors:
(a) Marginal Utilities of goods 'x' and 'y'
(b) The prices of goods 'x' and 'y'
The consumer is in equilibrium position when marginal utility of money expenditure on each good is the same.
The Law of Equi-Marginal Utility states that the consumer will distribute his money income in such a way that the utility derived from the last rupee spent on each good is equal.
The consumer will spend his money income in such a way that marginal utility of each good is proportional to its rupee.
The consumer is in equilibrium in respect of the purchases of goods 'x' and 'y' when:
MUx = MUy Where MU is Marginal Utility and P equals Price
If MUx / Px and MUy / Py are not equal and MUx / Px is greater than MUy / Py, then the consumer will substitute good 'x' for good 'y'. As a result the marginal utility of good 'x' will fall.
The consumer will continue substituting good 'x' for good 'y' till MUx/Px = MUy/Py where the consumer will be in equilibrium. Thus this is also known as the law of substitution.
Let us illustrate the law of Equi-Marginal Utility with the help of a table:
The side table shows marginal utilities of goods 'x' and 'y'. Let us suppose that the price of goods 'x' and 'y' are Rs. 2/- and Rs.3/-. Then MUx/Px & MUy/Py are as follows:
With a given income a rupee has certain utility to him. This is the Marginal Utility for him. Now the consumer will go on purchasing goods till the marginal utility of expenditure on each good becomes equal to the marginal utility of money to him. Thus the consumer will be in equilibrium at a point where:
MUx = MUy = MUm MUm refers to Marginal Utility of Money
Let us suppose that the given income of a consumer is Rs.19/-. With the given income suppose the marginal utility of money is constant at "Rs. 1 = 6 utils". By looking at the above table, it is clear that MUx/Px = 6 utils when he buys 5 units of good 'x' and MUy/Py = 6 utils when he purchases 3 units of good 'y'. Therefore the consumer will be in equilibrium when he is buying 5 units of good 'x' and 3 units of good 'y' and will be spending Rs.19/- on them.
This law can be explained with the help of the following diagram:
In the above diagram marginal utility curves of good 'x' & 'y' slope downwards. Marginal Utility of Money is confident at OM.
MUx/Px = OM when OK amount of good 'x' is purchases and MUy/Py = OM when OH amount of good 'y' is purchased.
Thus the consumer will be in equilibrium when he purchases OK amount of good 'x' and OH amount of good 'y' and then:
This law is based on the assumption that utility can be cardinally measurable. But in actual practices it cannot be measured in such cardinal numbers. It is also assumed that marginal utility of money is constant. But this is not true because when the quantity of money increases, its marginal utility will diminish.
This law is not applicable in the case of indivisible goods like TV sets, refrigerators, etc. Normally a person will buy only a single unit of such goods. Hence it is ridiculous to prepare an individual marginal utility schedule for such goods.
However, this principle is useful to a consumer to obtain maximum satisfaction and it is also helpful to a producer to get maximum profits.
Awais
Is the economic stimulus check taxable?
No, the rebate check is an advance payment of a 2008 tax credit. The money is actually a portion of the refund or payment applied to the taxes you will file in 2009. Therefore as it is a refund check it is not taxable income.
Have the 2010 social security stimulus checks been mailed?
As of July 14, 2010 you do NOT have any type of stimulus check available for the tax year 2010.
If you are on medicare and have the medicare part D coverage for your pharmacy purchase and the cost for your medicines arrive at what is called the doughnut hole you should receive a 250 rebate check from medicare to help you through the doughnut hole.
The check should arrive about 45 days after medicare see that this has happened to you.
If you don't get your rebate check, contact Medicare at 1-800-MEDICARE. Individuals receiving Medicare Extra Help will not receive a rebate check.
Ancillary industries are companies that manufacture parts for larger companies. Most ancillary industries are considered non essential in the business world.
Are we getting stimulus checks for 2012?
Active duty military is definantly getting a stimulus check this year. Civilians should get one also.
When will the 2010 stimulus checks go out?
Generally, there isn't one for 2009 for anyone who received one in 2008. The only people that do get it are certain people on Social Security and some other programs that missed out on the 2008 one. Those people had it included in a monthly deposit several months ago.
What is meant of consumer equilibrium?
consumers ability to have equal choices
Added:
Where a consumer makes choices about how much of a number of goods they will consume to maximise their total satisfaction (Utility).
What was and effect of the government stimulus in 2009?
Some of the effects of the government stimulus in 2009 include a stronger economy, rise in jobs and incomes as well as record high corporate profits,
Is there going to be another economic stimulus check for the holidays?
A combo of a political, tax, economic and social question....your guess is as good as anyones. None is planned.
Considering this rebate seems to have worked very poorly, was problem ridden and hard to administer...and may have actually generated a good deal of ill-will toward the politicians....it would seem unlikely. It is not even discussed as a prtion of any of the next recvery plans...making it even more unlikely. [Update] There may not be more stimulus checks, but there will be more tax credits. In Obama's 2010 budget (which looks forward to the next ten years) there are plans to extend to 2013, the "Making Work Pay" $400/$800 tax cut for workers, originally enacted as part of the economic stimulus plan. It also seeks to make permanent the expansion of the child tax credit and the newly enlarged college credit now called the American Opportunity Tax Credit ------------------------------------------------------ A bit more details found here: (Link moved to proper location).
Why does demand curve slope downward from left to right?
We have seen already that demand curves (price Demand) slope downwards from left to right. Since demand curve is only a geometrical representation of the law of demand with 'quantity' on the X axis, and 'price' on the Y axis, the shape of the demand curve has to be necessarily of one sloping downwards showing that more is demanded at a lower price. The question why does the demand curve slope downwards is an indirect way of asking why does the law of demand operate. What are the reasons behind the operation of law of demand? why do people demand more if price comes down? So it is better to discuss the reasons behind the law of demand or the economics of law of demand in order to understand the question under discussion.
If the IRS says you owe back taxes will you still get a stimulus check?
Regarding the new 1.9 trillion dollar stimulus bill sign into law March 11 2021: if your parents don't claim you as a dependent and you file 2019 or 2020 taxes, you should be eligible to get a stimulus check.
What is meant by the term socio-economic?
issues involving the economy and the social lives of citizens.
Answer:(merged from discussion)This term can be defined in a bit easier way by saying that it involves the good use of resources for betterment of society.
What is the Role of Medicinal aromatic plants in Indian National Economy?
medicinal and arometic plants are inherited with chemical constituents having power to treat infections,ailments,diseases,physiochemical imbalence,allergic conditions,hormonal changes,behavioural and other wise stimulate bodily mechanisms.Naturopathy,aromatherpy,acupunture,ayurveda use the plants or their parts to cure or treat patients.
Will everyone get a stimulus check in 2013?
not everyone. No basically it is for people who didn't get the last one. According to the AARP website, the stimulus payments of $250 per person or $500 per couple to retirees and other Social Security beneficiaries will be sent out in May. If you normally receive your Social Security payments by mail, you will receive a paper check in the mail and if you normally have your funds direct deposited, your payment will be transmitted electronically to you bank account.
How much is the stimulus check?
Go to www.irs.gov, click on "When will I get my stimulus check?", click on "Economic Stimulus Payments Information Center", click on "Where is my stimulus payment?" and follow the directions. :)
Because of the law of demand the demand curve always slopes?
given that the demand curve is for a normal good then this is the case as prices increase people will be willing to consume less of the good. If the good is a giffen good then this will not be the case an in fact the demand curve may either remain straight or will curve upwards as prices increase.
What is the current GDP in South Africa?
The industrial production growth rate is 5%, and the annual GDP growth rate is 3.1%
How will the economic stimulus plan affect the American people?
This is more of an opinion question, but I will do my best to provide both sides of the argument. Personally, I don't think it will work, but like I said, that's an opinion.
Yes: It gives money to people/businesses, which businesses will use to hire new workers and people will spend at businesses, giving businesses more money to hire new workers.
No: The money going to people doesn't just magically appear. It is printed in massive quantities and lowers the value of the dollar. It also increases our national debt. Both of these are very bad for a national economy. In addition, any smart person getting money isn't going to just go spend it all. They are going to invest it, pay off debt with it, or save it. Businesses would do the same thing.
Will there be a stimulus check before 12312008?
The kast one wasn't terribly sucessful, no economic package has been considered for one...the political scene is changing, it takes longer than that for the government to even come up with the process to do so...so NO.
Phnom Penh, 19th February 2009: Banking Cambodia 2009 with the theme .. (CMA), Canadia Bank, OSK IndochinaBank, ANZ Royal Bank and many others n Cambodia, there are presently about commercial banks, limited to servicing larger businesses in the urban areas
Where stimulus checks taxable?
No. the stimulus is just the same 2008 stimulus for people who did not receive the whole amount in 2008 and that was not taxable
There is no 2009 stimulus check. Instead workers get a making work pay creidt. A refundable tax credit of up to $400 for working individuals and up to $800 for married taxpayers filing joint returns. This tax credit will be calculated at a rate of 6.2 percent of earned income and will phase out for taxpayers with modified adjusted gross income in excess of $75,000, or $150,000 for married couples filing jointly. Taxpayers who do not have taxes withheld by an employer during the year can also claim the credit on their 2009 tax return.
What is the economic impact on natural environment?
We all know that natural vegetation are all the natural environment and resources. We human directly or indirectly must depend upon these resources for our livelihood , raw materials for running industries,herbs for medicine and soon.hence it is main source for our economy....
If you filed your taxes in April when will you get your stimulus check?
Unless you are receiving Social Security or Veterans Disability benefits, you will not be receiving a separate stimulus check this year.
If you did not receive the maximum stimulus last year and are eligible for more based on your 2008 return, that amount was already included in your refund check or used to reduce the tax due. The Making Work Pay credit will be credited to you when you file your 2009 return and 2009 withholding rates have been reduced to account for this.
