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You are an economic consultant to a city that just imposed a payroll tax of $1 per hour of work. This payroll tax is paid by workers through a payroll deduction: For each hour of work, the employer deducts $1 and sends the money to the city government. The initial wage (Before the tax) is $10, and total employment is 20,000 hours per day. Use a graph to show the effect of the tax on the equilibrium wage and employment.
Illustrate what is the major pros of the real GDP measure. Construct a price index giving all products equal weight.
Office building maintenance makes call for the stripping, waxing, and buffing of ceramic floor tiles. This work is often contracted out to office maintenance firms, and both technology.
Suppose a new law establishes a minimum teacher salary that is 20 percent higher than the prevailing salary. How would you expect this law to affect the average quality of teachers and the taxes paid by the typical household?
How do we know that calculating GDP by the expenditure approach yields the same answer as claculating GDP by income approach
Calculate Joe's Marginal Revenue Product for Labor (MRPL). What is Joe's optimal level of L if w=$22.75? Why?
Give three reasons why firms produce in Germany rather than in a lower-wage country.
Explain how do they impact the domestic economies of nations. How do they affect individual business decisions.
Let's watch a bank create money. Last Wednesday, the Bank of Numenor opened for business. The first customer, Edith, walked in the door with 100 silver coins called Thalers to deposit in a new checking account. The second customer, Max, walks in t..
Before the merger, each of the separate newspapers was losing about 10 million per year. what forecast would you make for the merged firms profits.
Illustrate the difference among the law of diminishing marginal returns and the law of diminishing marginal rate of technical substitution.
suppose that the average prices of refrigerators have fallen over the past few years yet the refrigerator companies
how would market forces affect the amount of time the proven oil reserves will last assuming no new oil reserves are
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