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1. Suppose that your employer offered you $4,000 in cash instead of health insurance coverage. Health insurance is excluded from state income taxes and federal income taxes. (To keep the problem simple, we will ignore Social Security and Medicare taxes.) The cash would be subject to state income taxes (8 percent) and federal income taxes (28 percent). How much would your after-tax income go up if you took the cash rather than the insurance?
2. How different would this calculation look for a worker who earned $500,000 and lived in Vermont? This worker would face a state income tax rate of 9.5 percent and a federal income tax rate of 35 percent.
part a1. russian farmers again have a poor crop. their government has announced that they will not ban exports. this
Suppose Jane has a one third chance of becoming disabled in any given year. If she does become disabled, she will earn $0. If Jane does not become disabled, she will earn her usual salary of $60,000. Jane has the opportunity to purchase disability in..
Ilustrate what is the equilibrium cost in the corn chip market. How many corn chips will be bought by children and how many by adults.
Consider a market demand curve that can be expressed as P = 4,500 - 20Q. There is one dominant firm, BostonSci Co., in the market characterized by a total cost function C = 300Q.dominant so MC = AC = 300. For simplicity, assume there are no fixed cos..
Suppose cookie sales fall as consumers become more carbohydrate-conscious. If the cookie industry is a constant-cost, perfectly competitive industry, this decline in market demand will cause market supply to?
Explanation and Analysis The student will correctly identify changes in market conditions and their effect on equilibrium price and quantity. In the market for dental services, perform the following for each event:
The "interest-only" mortgage typically converts later to a. Many years ago, the traditional mortgage loan structure specified. "Exotic" mortgages became popular in part because they allow someone of. Other things equal, increasing home prices tend to..
Jennifer buys a piece of costume jewelry for $33 for which she was willing to pay $42. The minimum acceptable price to the seller, Nathan, was $30. Jennifer experiences:
Other things equal, what effects would each of the following have on aggregate demand or aggregate supply? In each case use a diagram to show the expected effects of the equilibrium price level and the level of real output.
Think of some other real-world examples where the competitive hypothesis is violated. What would need to be added to the basic supply and demand model to accurately predict what people do when they aren't sure
Industry-land was so named because it is highly industrialized. It is a world leader in production of manufactured goods. If industry-land put all its productive efforts into manufactured goods, it could produce 1,000 units per year. Draw a produc..
The steady-state rate of unemployment is U/L = s/(s+f). Suppose that the unemployment rate does not begin at this level. Show that the unemployment rate will evolve over time and reach this steady state. (Hint: Express the change in the number of une..
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