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What is the impact of a lump-sum tax on labor supply?
What is the impact of a labor income tax on labor supply?
If a high income individual is on the backward-bending portion of her labor-supply curve, what would be the effect on her labor supply of a reduction in her marginal tax rate?
What is the impact of an income tax (wage plus investment income) on labor supply?
In the model that we have studied, consumption is a function of disposable income or income minus taxes C(Y −T), which implies that taxes T are a lump-sum subtraction from income Y. Derive the expression for the government purchases multiplier dY dG ..
Rapido's marketing experts tell the CEO of Rapido that if it decreased prices by 20%, it would sell so many more shoes that profits would rise. If the expert is correct, at its current output, what can you infer about its marginal revenue and marg..
Draw a supply and demand graph to illustrate what will happen to the rental price of an apartment after the imposition of rent controls. Do you think this policy will benefit students? Why or why not?
Your study partner is confused by upward-sloping short-run aggregate supply curve and vertical long-run aggregate supply curve. How would you explain why these slopes differ.
Explain why the November 1996 Deutsche Telekom issue was a landmark global financial markets event. Discuss: General reasons for privatization and DT’s reasons for it; why DT had to expand the offer outside Germany; why the issue was successful from ..
Imagine you are in charge of development for a developing country and were approached by a multinational corporation interested in locating in your country. Identify some of the benefits and some of the costs to the host country from allowing a multi..
If the current minimum wage is $7.50 an hour, there are 10 million workers who earn the minimum wage, and the elasticity of demand for low skilled labor is -0.2.
Analyze the USA financial meltdown that happened in 2008-2009. This crisis was partially caused by the reward systems that were in place for participants in the financial system. Identify the major participants in the financial system.
Government purchases rise to 1440. How does this increase change the equation describing desired national saving? Show the change graphically. Illustrate what happens to the market-clearing real interest rate.
Explain the difference between a positive and negative externality. In your analysis, make sure to provide an example of each type of externality. Why does the government need to get involved with externalities to bring about market efficiency? What ..
Skates and Dates is a single-price monopolist (a skating rink) in a small town, facing an inverse demand curve of P = 35-0.5Q, where P is the price of admission and Q is the quantity of admissions. what is the profit maximizing condition for Skates a..
Use a graph to analyze the effects of the following shocks on the equilibrium quantity of savings, investment, the interest rate, and the current account in a small open economy. Assume that the economy begins with a balanced current account. Label e..
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