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Q. 1. Last year President Obama proposed a job creation program that included a payroll tax cut? Using economic theory and with the help of a graph discuss what is the likely effect of this tax cut on wages, employment and tax revenues. What determines whether employers or employees will benefit the most from this tax cut?
2. The demand curve for gardeners is GD = 19 - W, where G = the number of gardeners and W = the hourly wage. The supply curve is GS = 4 + 2W.
a. Graph the demand curve and the supply curve. What is the equilibrium wage and equilibrium number of gardeners hired?
b. Suppose the town government imposes a $2 per hour tax in all gardeners. Indicate the effect of the tax on the market for gardeners. What is the effect on the equilibrium wage and the equilibrium number of gardeners hired? Explain Explain how much does the gardener receive?
Explain how much does the customer pay? Explain how much does the government receive as tax revenue?
Discuss the policies that Keynes as well as Hayek supported regarding how federal government ought to manage economy. What are differences between each school of thought.
What are the annual accounting costs for the firm described above? What are the annual explicit costs for the firm described above?
Show graphically the effect on the supply and demand for Bonds in a deflationary period.
Electoral College system take a country named know land that has. Suppose there are 9 small states in know land where each have 1 million people in.
Price elasticity of demand is 1.5 and a firm raises its price by 20 percent the quantity sold by the firm will ceteris paribus.
The two firms have the same demand curve P=100-4Q, Marginal cost of Firm 1 is 5 and for firm 2 is 10.
Watch the video titled Fear the Boom and Bust. Using the tools of macroeconomics, identify the primary difference between the two philosophies.
An open economy with a fixed exchange rate follow a money growth rule successfully if capital moved freely across its borders..
What other economic factors are affected when taxes are raised or lowered, and how are they affected. Should the government increase tax rates on everyone as a way to equalize incomes and wealth.
The ending of company prepayments balance is expected to be the same as its beginning prepayments balance.
How much equity would she have had in the house at the time of its sale.
As Bavarian Crystal Works is only one for many crystal producers in the world market, it can wholesale as many of the decanters as it wishes for $50 apiece.
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