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Suppose that you can work anywhere form 0 to 24 hours per day at a wage of $1 per hour. You are subject to a tax of 50% on all wages over $5 per day (the first $5 per day is untaxed). You elect to work 10 hours per day.
a. Show your budget constraint between labor and wages, and show your optimum point.
b. Suppose that the tax law is changed so that all wages are subject to a 25% tax. Do you now work more or less than 10 hours? Does the government collect more or less tax revenue than before?
Elucidate the factors which contribute to the elasticity of goods. Descriobe how these factors influence consumers to purchases goods or services.
Illustrate what policies would you implement to help the economy reach full employment.
At the same time, Chinese consumers' incomes have risen. Assume that cars are a norma good. Use a diagram of the supply and demand curves for cars in china to explain what has happened in the Chinese car market.
Illustrate what are the roles of central bank independence and financial market development in budget deficits and inflation.
Explain how will reduced smokers affect the GDP in the long and short run. What does increased revenue from cigarette taxes do to the deficit and budget.
Important information about Equivalent yearly Worth. With an interest rate of 10% per year and given the following estimates, the annual worth of alternative ''F'' is closest to
More demand and supply should be included in your analysis Warning: you are not required to "prove" or show your selection of the determinants of demand and supply. But your discussion and selection must be reasonable.
Illustrate what would this typical basket have cost in the base year.
Explain how are the slope of a production possibilities frontier and the opportunity cost of the goods related.
Illustrate what is offshoring of white-collar service jobs, and how does it relate to international trade. Why has it recently increased.
Compute the PV of Mr. Deco's payment using the equivalent real cash flow and real discount rate.
Time Magazine and Newsweek are two competing news magazines. Suppose that each company charges the same $5.00 price for their magazines. What is the Nash equilibrium for this sequential game?
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