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The Targeted Jobs Tax Credit (TJTC) existed from 1979 through 1994. It offered employers a tax credit for each “less-skilled” worker they employed. Assume that the tax credit was fixed at $5 per- hour-worked by a less-skilled worker. According to neoclassical theory, how should this tax credit have affected the labor demand curve for less-skilled workers? What are the predicted effects on wages and employment? How does the share of the credit captured by workers versus employers, and the employment level, depend on the elasticities of the labor supply and labor demand curves? You will need graphs in your answer.
Illustrate why are second hand goods not included in the value of national income.
In an advertisement for a professional employment organization it was stated: “Outsourcing can be a cost-effective alternative to the expense and administrative burden of a traditional employer-employee relationship.” Evaluate the costs and benefits ..
Suppose that Taher's pizza business operates under competitive conditions and that his short-run production function is q=20^E. What happens to the quantity of labor he demands if the wage increases to w1 = $12?
Assuming 20 people sign up for the cruise, determine how many passengers will result in the max revenue. What is the max revenue? What is the fare per passenger?
Suppose that there is no fixed production input (i.e. long run.) With the production function above, the slope of the isoquant is given by MRTS = -(K/2L). Assume the firm chooses to hold costs C at $50.
If you were a strong supporter of free trade and in charge of U.S. international trade policy, would you cut tariffs and quotas, or would you negotiate with the nation's trading partners, maintaining trade barriers unless they lowered theirs also? Di..
A manufacturer of computer chips has a computer hardware company as its largest customer. The computer hardware company requires all of its chips to meet specifications of 1.2 cm. What are the elements that the production manager should consider in d..
Fran who is in the 35% tax bracket, recently collected $100,000 on a life insurance policy she carried for her father. She currently owes $120,000 on her personal residence and $120,000 on business property. What would be the tax consequences of each..
q.assume that the following asset values in millions of dollars exist in ironmaniacategory value federal reserve notes
Suppose there are two inputs in the production function, labor and capital, and these two inputs are perfect substitutes. The existing technology permits 1 machine to do the work of 3 workers. The firm wants to produce 100 units of output. Suppose th..
What is the monetary certainty equivalent for the following gamble: gain $130 with probability 0.4, lose $320 with probability 0.6.
Is an increase in the marginal income tax rate reflected by a shift in the after-tax supply of labor or a movement along the supply curve when the pretax wage rate is on the vertical axis? Explain your answer
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