subjective

Examples of subjective in the following topics:

• Objective, constraints and alternatives

  • The achievement of any objective is subject to a set of constraints.
  • For instance, a firm may try to maximize market share (objective) subject to the constraint that they earn a 12% return on capital investment.
  • Alternatively, a firm might try to maximize the rate of return on capital subject to the constraint that they maintain a 20% market share.
  • An individual might try to maximize income subject to the constraint that they have 30 days of leisure time per year or they might try to maximize their leisure time subject to the constraint that they have at least $50,000 income per year.

• Arguments For and Against Discretionary Monetary Policy

  • Discretionary policies refer to subjective actions taken in response to changes in the economy.
  • Discretionary policies refer to actions taken in response to changes in the economy, but they do not follow a strict set of rules; instead, they use subjective judgment to treat each situation in a unique manner.
  • However, discretionary policy can be subject to dynamic inconsistency: a government may say it intends to raise interest rates indefinitely to bring inflation under control, but then relax its stance later.

• Introducing Externalities

  • An externality is a cost or benefit that affects an otherwise uninvolved party who did not choose to be subject to the cost or benefit.
  • In economics, an externality is a cost or benefit resulting from an activity or transaction, that affects an otherwise uninvolved party who did not choose to be subject to the cost or benefit .

• Trading off Equity and Efficiency

  • Each tax rate corresponds to a particular income range; income above a tax range is subject to a higher tax rate that corresponds to a higher income range and income below a specific range is subject to a lower tax rate, similarly identified with a lower income range.
  • At the highest income tax rate, income taxes can become regressive, since high earners are only subject to a constant albeit highest rate on their income.
  • For example, income from $500,000 and above will be subject to the same rate, making the overall tax burden as a proportion of income higher for the individuals on the starting point of the range .

• Corporate and Payroll Taxes

  • Company income subject to taxation is often determined much like taxable income for individuals.
  • Corporations are also subject to a variety of other taxes including: property tax, payroll tax, excise tax, customs tax and value-added tax along with other common taxes, generally in the same manner as other taxpayers.
  • Corporations, such as CBS, whose headquarters are pictured above, are subject to multiple forms of tax, from corporate income tax to payroll taxes.

• What is Economics?

  • Robert Heilbroner argues that economics has "been caught between two respectively unsatisfactory definitions: an ‘objective' interpretation tied to the idea of wealth, and a ‘subjective' one focused on decision making" (Heilbroner, Behind the Veil of Economics, p14).
  • The first because ‘objective' wealth cannot be described without reverting to the subjective criterion of utility; the second because the central placement of subjectivity widens economics to the point at which it becomes applicable to everything, and therefore empty of specific ‘economic' content" (Heilbroner p 14).

• Facts, Information, Knowledge and Wisdom

  • The definitions of facts, information, knowledge and wisdom used here are superficial and subject the reader's interpretation.

• Comparing Marginal and Average Tax Rates

  • A regressive tax is a tax imposed in such a manner that the average tax rate decreases as the amount subject to taxation increases .
  • The amount of the tax is in proportion to the amount subject to taxation.

• Is Economics a Science?

  • A focus of the subject is how economic agents behave or interact both individually (microeconomics) and in aggregate (macroeconomics).
  • The underlying components of economic theory can also be applied to variety of other subjects, such as crime, education, the family, law, politics, religion, social institutions, war, and science.

• Disposable Income

  • For the purposes of calculating the amount of income subject to garnishment, United States federal law defines disposable income as an individual's compensation (including salary, overtime, bonuses, commission, and paid leave) after the deduction of health insurance premiums and any amounts required to be deducted by law.