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1. Suppose that your employer offered you $4,000 in cash instead of health insurance coverage. Health insurance is excluded from state income taxes and federal income taxes. (To keep the problem simple, we will ignore Social Security and Medicare taxes.) The cash would be subject to state income taxes (8 percent) and federal income taxes (28 percent). How much would your after-tax income go up if you took the cash rather than the insurance?
2. How different would this calculation look for a worker who earned $500,000 and lived in Vermont? This worker would face a state income tax rate of 9.5 percent and a federal income tax rate of 35 percent.
Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change? Does your answer depend on marginal propensity to consume?
classical economists believe that. keynesian economists believe that. in dealing with the "great recession", the obama administration has largely followed the policies of ____________
Illustrate what was the growth rate of the GDP deflator between 1999 and 2000.
Are you for or against free trade? Are you for or against NAFTA? What is the economic basis for trade? Explain the underlying facts that support free trade and give an example of a good that you purchased recently that is based on resource difference..
Which of the following are the ideal conditions for a laissez-faire economy?
Say you are the manager of a perfectly competitive firm selling a product. Your business is making a loss because total revenue is less than total costs.
q.it is now january 1 2012. today you will deposit 1000 into a savings account that pays 8.a if the bank compounds
A regulated natural monopoly has the following data: if the firm is ordered to price its good so that there is locative efficiency then the firm will have?
A price floor reduces the amount of a product that consumers buy because it keeps the price above the competitive equilibrium of market.
How markets allocate resources. Derived demand is the change in demand due to a result initiated in another market. Market changes affect the demand for resources in related markets. For the following scenario, you are given a list of products.
A firm uses 50,000 workers to produce 200,000 units of output per day. Compute the values for the following four formulas.
What technology available to produce your product suddenly improves. You should note whether the scenario indicates a shift of the curve or movement along the curve. You are a supplier of widgets.
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