Weekly budget line, Tom earns $15 per hour for up to 40

Weekly budget line

Assignment Help Business Economics

Reference no: EM131244633

Tom earns $15 per hour for up to 40 hours of work each week. He is paid $30 per hour for every hour in excess of 40. Tom faces a 20 percent tax rate and pays $4 per hour in child care expenses for each hour he works. Tom receives $80 in child support payments each week. There are 168 hours in the week. Graph Tom’s weekly budget line.

Reference no: EM131244633

Questions Cloud

Explain maturity intermediation-denomination intermediation : Describe how a Commercial Bank (JP Morgan Chase etc) acts as an intermediary in the creation and flow of money? Example, how does it use checking and savings accounts for mortgages, auto loans, small business loans etc. Explain, maturity intermediati..

The elasticity of demand varies along most demand curves : More tax revenue is raised if a tax is collected from consumers. More tax revenue is raised if a tax is collected from producers. The equilibrium price after a specific tax will depend on whether the tax is collected from consumers or producers. The ..

Connection between lerner index and industry concentration : There are 2 firms consider here from 2 different industries. A firm in industry A has MC of production = $100 and they know from historical experience that their Lerner index is 0.3. Articulate which firm is more likely to earn excess profits in the ..

What is dead weight loss and what causes dead weight loss : What is an efficient outcome? How does the assignment of property rights affect the efficiency of outcomes? "Competitive markets tend toward efficient outcomes." Explain what this means. Assume the market for oil is currently in equilibrium. Why woul..

Weekly budget line : Tom earns $15 per hour for up to 40 hours of work each week. He is paid $30 per hour for every hour in excess of 40. Tom faces a 20 percent tax rate and pays $4 per hour in child care expenses for each hour he works. Tom receives $80 in child support..

Convert social security from payroll tax financing : Discuss the following quotation. "The ongoing effort to partially convert Social Security from a payroll tax financing to income tax financing by further cutting the payroll tax.... and replacing the funds with general revenues may in short order put..

Suppose the earned income tax credit gives workers : Suppose the Earned Income Tax Credit gives workers 40% of their earnings for earnings up to $15,000 and begins to reduce the credit by 20% for every dollar of earnings above $22,000. Draw the budget constraints before and after this EITC goes into ef..

Revised pricing and communications strategy : French’s going up against the ketchup giant, Heinz, and another well entrenched brand in the President’s Choice ketchup. As such, French’s is facing some significant challenges as it expands into and attempts to gain significant share of the Canadian..

Description of how globalization should have improved : Description of how globalization should have improved/not improved the situation in a country such as Malawi including. Characteristics of Globalization for a country such as Malawi. For each characteristic in i), the changes that should occur for Ma..

User Account

All Pages