Show your budget constraint and your optimum point

Assignment Help Business Economics

Reference no: EM13157771

Suppose that you can work anywhere from 0 to 24 hours per day at a wage of $1 per hour. You are subject to a tax of 50% on all income over $5 per day (the first $5 is untaxed). You elect to work 10 hours per day.

A) Show your budget constraint and your optimum point.

B) Suppose that the tax law is changed, so that all income is subject to a 25% tax.

Do you now work more or less than 10 hours? Does the government collect more or less revenue than before?

C) Which do you prefer: the old tax la or the new one?

Reference no: EM13157771

Questions Cloud

Life insurance company based in columbus : Nationwide Financial, a 5,000-employee life insurance company based in Columbus, Ohio, found that its management development program contained four types of managers.

State the atomic orbitals of two iodine atoms combine : The atomic orbitals of two iodine atoms combine to form the diatomic molecule. Use the periodic table to determine the atomic orbitals that overlap to form the molecule and the symbol of the noble gas that has the same electron configuration as th..

What will be the volume of the balloon : A balloon has a volume of 1.75L at a temperature of 25°C. What will be the volume of the balloon if you take it out into the winter cold air at -15°C?

Effective-interest amortization problem : A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2007. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,145. Using effective-interest amortization, what will the carrying value of the ..

Show your budget constraint and your optimum point : Show your budget constraint and your optimum point. Do you now work more or less than 10 hours? Does the government collect more or less revenue than before?

What accounts are decreased for the warranty work : Fungus Audio Works Inc. warrants its products for one year. The estimated product warranty is 3% of sales. Assume that sales were $680,000 for January. In February, a customer received warranty repairs requiring $4,200 of parts.a. Determine the warra..

How much heat is required to warm ice : How much heat is required to warm 227 g of ice from -44.9°C to 0.0°C, melt the ice, warm the water from 0.0°C to 100.0°C, boil the water, and heat the steam to 173.0°C?

State what is the silver ion concentration in a solution : What is the silver ion concentration in a solution prepared by mixing 357 mL of 0.392 M silver nitrate with 469 mL of 0.504 M sodium phosphate?

What attributes make someone attractive : What attributes make someone attractive? How does proximity influence attractiveness? Are people with similar interests more or less attractive than people with different interests?

User Account

All Pages