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Assume that the current Disability Insurance (DI) benefit for those who are unable to work is $X per day and that DI benefits go to zero if a worker accepts a job for even 1 hour per week. Suppose that benefit rules are changed so those disabled workers who take jobs that pay less than $X per day receive a benefit that brings their total daily income (earnings plus the DI benefit) up to $X. As soon as their market earnings rise above $X per day, their disability benefits end. Draw the old and new budget constraints (label each clearly) associated with the DI program, and analyze the work-incentive effects of the change in benefits
Macro-economics is perhaps most divisive area of economics. Macro economists divide themselves into different schools of thought. Two of the biggest camps are the Keynesians and the Monetarists.
Congress is considering a tax credit program for those who purchase energy-efficient appliances. Proponents of the program have said that $400 million will be given directly to taxpayers and argue that this will have an economic effect that is gre..
Suppose Shaqueena is currently earning income of $23,000 (I =23) and can earn that income next year with certainty.
The capital-labor ratio of a cost minimizing firm in the long run indicates explain how a firm should produce its output, not how much output it should produce.
Elucidate when producers reduce price for good and services, it increase consumers surplus and everyone standard of living.
What would you give an example of a microeconomic decision you've made at work or home? What factors contributed to making that decision.
Consider a firm that has just built a plant, which cost $20,000. Each worker costs $5.00 per hour. Based on this information, fill in the table below:
One might expect company in monopolistically competitive market to experience greater swings in price of their products over the business cycle than those in an oligopoly market.
Now what will your price be? How much deadweight loss will your firm created? After the election, you decide your firm is not making enough money. So you hire the lobbying firm C&E. C&E are able to convince regulators that you should set your pri..
Depends on this information, elucidate the effect on the consumption of cereal.
a regular price or a sale price. Suppose that when one firm announces the sale price and the other announces the regular price for a particular product, the firm announcing the sale price attracts 50 million extra customers to earn a profit of $5 ..
21st century electronics has found a theft problem at its warehouse and has decided to hire security guards. The firm wants to hire the optimal number of security guards.
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