Reference no: EM132151885
Question: Initially the labor market is in the equilibrium with the equilibrium wage of 15 dollars per hour and an equilibrium employment of 25,000 workers. Imposition of income tax in this market decreases the level of employment to 21,000 workers, decreases the workers' net wage to 13 dollars while leading to an increase in the cost of hiring labor to the firm up to 17 dollars. What is the tax revenue generated as a result of the imposition of the income tax?
A. 315,000
B. 100,000
C. 84,000
D. 273,000
If domestic labor and foreign workers are complement in production, then increase in immigration will lead to
A. an increase in the marginal product of labor of domestic workers
B. an increase in the value of the marginal product of labor of domestic workers
C. an increase in supply of domestic workers
D. A and B only
Starting at the initial equilibrium with a downward sloping demand and an upward sloping supply the initial employment level is equal to 5000 workers. Also, let's assume that the country is experiencing an influx of immigrants equivalent to 2000 workers who are perfect substitutes with domestic labor. This influx of immigration will
A. increase the total level of employment to 7000 workers, with 2000 domestic workers losing their jobs
B. increase the total level of employment to more than 5000 workers, with less than 2000 domestic workers losing their jobs
C. increase the total level of employment to 7000 workers, with less than 2000 domestic workers losing their jobs
D. increase the total level of employment to 7000 workers with more than 2000 domestic workers losing their jobs