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Mr.A makes $50,000 a year and pays $10,000 in taxes. Ms.B makes $30,000 a year and pays $6,000 in taxes. Find the tax rate and after tax income for each of them. Identify what type of tax this is.
Consumption is $6 trillion, investment is $2 trilion and government purchases are 2.5 trillion. The country exports $1 trillion and imports 1.5 trillion. Find the net exports and solve for the level of aggregate demand.
If it cost Wardco $10million to treat the water and the value of mined products to customers is $8million, requiring water treatment would kill the project. Should Wardco be required to treat the water in this case?
Compute demand of price elasticity of for natural gas sold to the US.
Suppose you win a lottery, and your after-tax gain is $40,000 per year until you retire. As a result, you decide to work part time at 32 hours per week in your old job instead of the usual 40 hours per week. Calculate the annual income effect on hour..
Suppose that expectation of reducing housing values cause households to decrease their demand for new houses and the financing that accompanies it.
Discuss possible hold-up problems, importance of long term contracts, and possibility of underinvestment in labor that might occur under such compensation schemes.
Many students are surprised to learn that employees may be fired for any reason not expressly prohibited by the law. As we have seen, the law requires employers to accommodate a fairly wide range of employee behaviors and conditions. However, there a..
State whether the following actions will increase or decrease GDP:
A firm uses labor and capital to produce output according to the production function q=100KL, where L is the number of units of labor used and K is the number of machines. What is the marginal product of labor. What is the marginal product of capital..
When ShorTech introduced its Quadrant mobile phone, it had few competitors and set a price of $500 when its marginal cost per unit was $350. The economics consulting firm it hired to estimate the demand elasticity confirmed this was the optimal price..
The equilibrium price of coffee mugs rose sharply last month, but the equilibrium quantity was the same as ever.
Describe how each of these activities affects government, households, and businesses. Describe the flow of resources from one entity to another for each activity.
Eastern Airlines offers coach seats on its flight from Milwaukee to New York for $250. Sales have averaged 700 per day during the last year. Eastern’s primary competitor (Continental Airlines) cut their prices from $220 to $200. The quality of travel..
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