The targeted jobs tax credit existed

Assignment Help Business Economics

Reference no: EM13886530

The Targeted Jobs Tax Credit existed from 1979 through 1994 and offered employers a tax credit for each less-skilled worker they employed. Assume that the tax credit was fixed at $3 per hour worked by a less-skilled worker. How would this tax credit have affected the demand curve for less-skilled workers? What are the predicted effects on wages and employment? Use a graph to illustrate your answer, and state clearly any assumptions you are making.

Reference no: EM13886530

Questions Cloud

Utility function-number of units of good : Sam’s utility function is U(x1, x2) = 2x1 + x2, where x1 is the number of units of good 1 he consumes per week and x2 is the number of units of good 2 he consumes per week. Sam has $200 a week to spend. If he belonged to the club, he could buy good 2..

Assume that consumer has the utility function : Assume that a consumer has the utility function U(x,y) = (3x+1)y, where x and y represent the quantities of two goods, X and Y. For parts (a)-(h), assume that good X costs pX=$3 per unit and good Y costs pY=$4 per unit. “Wealth” and “income” have the..

Utility functions and prices : Determine the optimal bundle of x1 and x2 given the stated prices and income using one of the methods we went over in class.

The federal minimum wage was last increased : The federal minimum wage was last increased from $6.55 to $7.25 per hour. Suppose that the elasticity of labor supply of teenagers is 0.12. Using this estimate, by what percent would you expect teenagers’ quantity of labor supplied to change in respo..

The targeted jobs tax credit existed : The Targeted Jobs Tax Credit existed from 1979 through 1994 and offered employers a tax credit for each less-skilled worker they employed. Assume that the tax credit was fixed at $3 per hour worked by a less-skilled worker. How would this tax credit ..

Make up a value for the exchange rate : Suppose that a Starbuck’s venti latte currently sells for US$4.00 in the United States and C$5.00 in Canada. Make up a value for the exchange rate between the U.S. dollar and the Canadian dollar (expressed as Canadian dollars per U.S. dollar) that le..

Suppose a frost destroys the tomato crop : Suppose a frost destroys the tomato crop in california but farmers see an increase in their revenue

Donald is a stamp collector : Donald is a stamp collector. The only things other than stamps that Donald consumes are Harold’s doughnuts. It turns out that Donald’s preferences are quasilinear, represented by the utility function U(d, s) = ln d + s, where d is the number of dough..

User Account

All Pages