Michael,a U

question 14

Essay

Michael,a U.S.citizen,earned $100,000 of foreign-earned income and no other U.S.or foreign income in 2013.He also incurred $10,000 of employment-related expenses,none of which were reimbursed.If the full foreign-earned income exclusion is utilized,calculate the deductible employment-related expense (before the 2% nondeductible floor).

Understand the concept of marginal social benefits and costs in the context of pollution from coal mines.

Recognize the efficient quantity of pollution where marginal social benefit equals marginal social cost.

Identify various policy instruments used for environmental protection, including environmental standards, emissions taxes, Pigouvian taxes, and tradable emissions permits.

Analyze the market-determined quantity of pollution and its implications for societal welfare.

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Definitions:

Savings And Loan Bailout

A government intervention in the late 1980s and early 1990s, aimed at saving the Savings and Loan industry from collapsing due to bad loans and investments.

Reserve Ratio

The fraction of deposits that banks are required to hold in reserve and not lend out, often set by central banks to control the money supply.

Gold Coins

These are coins made primarily or exclusively of gold, often used historically as currency and currently as investment or collectible items.

Reserve Ratio

The fraction of deposits that banks are required to hold in reserve and not lend out, set by central banking authorities.