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Discuss the effect of the following public policies on the supply of labor. If there is a difference, discuss how the effect varies over time (e.g., now versus in the future) or across different groups of people.
a. Allowing a tax credit for childcare expenses.
b. Providing Social Security benefits to retired women who worked outside the home for less than 10 years, with the size of the payment dependent on their husbands’ earnings history. (In fact, they receive benefits equal to 50 percent of their husbands’ Social Security benefit. When answering, you may ignore the fact that the government has to pay for these benefits.)
c. Paying a $10,000 bonus to women who give birth to a third child. (Note: The Japanese government has recently instituted this policy—along with a series of other subsidies for child-rearing—in an effort to reverse the rapid decrease in fertility rates there.)
d. Allowing taxpayers to deduct the expenses associated with relocating in order to work at a new job.
Consider a class of 25 Microeconomics students, some of whom are confused about a concept after a professor explains it. A student who reveals his confusion by asking a question loses 10 utile. However, when the professor clarifies the concept, each ..
Flora's Flowers operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue.
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The national economy has been in a slump for several years, but recent signs of strength in much of the economy have led many forecasters to conclude that an expansion could finally be in the offing.
q.suppose the consumption of gold offers people a marginal utility that diminishes as that person consumes more gold.
What will happen to Jill's consumption in first period when interest rate increases. Is Jill better off or worse off than before interest rate increase.
Suppose which in the 1990s, the average retail price of a roll of Kodak film was $6.95 also which Kodak's marginal cost was $3.475 per roll.
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