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Suppose the welfare benefit formula is Benefit=$4,800-0.67(wages>$6,000) what is the marginal tax rate on The first 6,000 of wages? Wages above 6,000 How large is the benefit if wages equal $0? $4,000 and $4,800, $9000 and 7,000? What is the breakeven level of income in this case? A welfare recipien can receive food stamps as well as cahs welfare benefits. If the food stamp allotment is set as follows, Food stamps=$5000 - 0.30 (wages) A) how high can wages rise before all food stamps are eliminated? B) If the welfare benefit formula in Problem 1 applies, what is the combined marginal tax rate of both welfare and food stamps for wages above $6000?
Newspaper reports frequently suggest that the administration (regardless of who is president) wants the fed to lower interest rates. Why do you think that might be the case?
Suppose that expectation of reducing housing values cause households to decrease their demand for new houses and the financing that accompanies it.
When WAMU failed the investors who had purchased MBS backed by mortgages originated by WAMU lost all their investment in these MBS because the MBS were unsecured liabilities of WAMU.
If government imposes a $5 specific tax to be collected from sellers, what is the price consumers will pay. Explain how much tax revenue is collected.
Suppose the government of a desert community wants to punish excessive water usage, where "excessive" is defined as any usage greater than 100 gallons/week. to do this, the government paces a flat $100 income tax on anyone who consumes more than 100 ..
A monopolist has determined that marginal revenue is $2.00 and average cost is $1.75. It has also determined that the lowest sustainable average cost is $1.75. To maximize profit, should the firm lower its price, increase its price, or leave the pric..
On December 12 of 1980, Apple Computer sold shares in an initial public offering (IPO) for $22 per share. Since then, the stock has split 2-for-1 three times: June of 1987, June of 2000, and February of 2005. If you bought 100 shares at the IPO and s..
Illustrate what salary would be required for the soldiers to be as well off as with the allowance.
Explain how can tax cuts help revive the economy include discretionary fiscal policy, expansionary fiscal policy, tax multiplier, Aggregate Demand-some-not all--of these and/or other terms from this week.
question 1the difference between game trees and decision trees isselect onea. that game trees are not useful in
Milk is a commodity is it a necessity or a luxury product. Evalute the availability of its substitutes for the product. Explain how the necessity of a good and the availability of substitutes impact the elsticity of the product.
A new law requires that all construction workers in your area belong to a labor union. Will this shift the labor supply curve, demand curve if both in home construction.
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