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Suppose the government of Washington is considering the addition of a new tax on rms. You have been called in to provide expert analysis on how such a tax would eect employment of labor. There are 3 proposals the government is considering:
1. A tax on every hour an employee works (e.g., \X" cents per hour).
2. A tax on some percentage of the value of the rm's buildings, land, and machinery (e.g., \Y" percent of the total property value).
3. A tax on every unit of output a rm produces (e.g., \Z" cents per unit of output).
While all the plans have the potential to reduce employment opportunities, which plan would probably have the most favorable impact on employment of labor? Briefly explain your reasoning.
Illustrate what is the real GDP in each year, given that the price index has risen from 100 in the base year to 104.5 in Year 1 and up to 108.3 in Year 2.
Distinguish between the Federal funds rate also the prime interest rate. Why is one higher than the other.
The following table is a record of the data of a competitive firm on labour and output: Reproduce the above table on your answer sheet and complete the table. How many units of labour should be employed to maximise profit? Briefly explain your answer..
If Automatic stabilizers change the federal budget balance by $70 billion for every 1 percent change in real GDP growth, what will happen to the federal budget balance if the economy falls into a recession of -3 percent from a growth path of +2 perce..
Mars Inc. is considering the purchase of a new machine that will reduce manufacturing costs by $5,000 annually. What is the tax on salvage value?
Explain the differences between the Federal Reserve and the U.S. Treasury? Be specific. Do they complement or compete against each other? Could one of then do the others job? Should one be allowed to do the others job? Why?
The Einstein Bagel Corp. has used a frequent buyer program whereby a consumer receives a stamp each time she purchases one dozen bagels for $6. After a consumer accrues 10 stamps, she receives one dozen bagels free. This offer is an unlimited offer, ..
It takes a phlebotomist 10 minutes to complete a blood draw. The supplies for each draw cost $5 and the phlebotomist earn$25 per hour. the phlebotomy lab is designed to accommodate 24000 draws per year. its rent is 100,000 per year. what are the aver..
q.1. an investor buys a property for 1 million with 40 of the purchase price attributable to the land and the balance
Illustrate what is the marketing concept recognizes that individuals pass through stages in the course of their lives in groups that are related to their age, period of mat¬uration, and environmental events.
Exhibit 2-8 represents Robin Hood’s production possibilities frontier. Assume that he currently produce at point G inside the production possibilities frontier. He can produce more bows employing the existing resources more efficient. He can increas..
A property, if sold today. will provide the equity investor with $250,000 in cash flow after taxes. If the property is held, the annual after-tax cash flow received by the investor is expected to be $23,000 per years 1 to 5. If held and sold in 5 yea..
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