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Payroll Tax- You are an economic consultant to a city that just imposed a payroll tax of $1 per hour of work. This payroll tax is paid by workers through a payroll deduction; for each hour of work, the employer deducts $1 and sends the money to the city government. The initial wage before the tax is $10, and total employment is 20,000 hours per day.
Use a graph to show the effect of the tax on the equilibrium wage and employment.
The Wozniak Corporation, a maker of aircraft engines, determines that in 2008 the demand curve for its product is as follows-What is the price elasticity of demand if price equals $500?
the company provides the broker with an infrastructure, such as clerical support, phone services, and office space, and especially for new brokers, a base wage.
Suppose which major function of profit is to allocate resources according to consumer preferences
Discuss how the Market trends of Starbucks Coffee WILL FACE. Focus on how each of the following will change or will not change and Way.
Account for the effect of the two proposed fiscal policy actions in the short run and long run. This includes a description of the consequences of relevant macroeconomic variables.
a. Explain how asymmetric information about a hidden action or a hidden characteristic can lead to moral hazard or adverse selection. b. Discuss a few tactics that managers can use to overcome these problems.
Suppose that the natural rate of unemployment in a particular year is 5 percent and the actual rate of unemployment is 9 percent. Use Okun's law to determine the size of the GDP gap in percentage-point terms. If the potential GDP is $500 billion i..
Illustrate what is the effect on the supply and demand of skateboards. Every events described below will have some impact on the demand for skateboards.
Explain what caused the Financial Crisis of 2007-2009 and explain how in the economy could be self-regulating in the long-run and should recover from the Great Recession.
Because of the War of the Ring, the price of a sword went up to $150. Calculate new wage and employment level in each sector. (c) Do Hobbits gain or lose if the price of a sword goes up to $150? (To answer the quest..
the manager of a firm that receives revenues of $40,000 per year from product X and $90,000 per year from product Y. The own price elasticity of demand for product X is -1.5, and the cross-price elasticity of demand between product Y and X is -1.8..
Assume that demand for oranges is given by the following equations, With quanity measured in oranges a day and price measured in dollars per Orange.
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