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Payroll Tax Cut Is Unlikely to Survive Into Next Year The payroll tax holiday in 2012 reduced workers' tax by $700 for an income of $35,000 a year and by $2,202 for incomes of $110,100 and over. If the tax holiday ends, the Economic Policy Institute recommends replacing the payroll tax cut with infrastructure spending. Source: The New York Times, September 30, 2012. Explain how a payroll tax affects the before-tax and after-tax wage rate and employment and unemployment. Explain the effects of an increase in infrastructure spending on employment and unemployment. Explain which fiscal policy action would have the bigger effect on employment: continuing the payroll tax cut or new infrastructure spending.
John is willing to purchase 7 computers. This scenario displays the law of demand. Do you agree or disagree.
Suppose they remain in the same place for the next five years, the Bergholts would like to know if it is better to buy or rent the home.
Explain how could government make a choice among two health effects.
Martin's Yachts has paid yearlydividends of $1.40, $1.75, and $2.00 a share over the last three years, respectively.
What is the core issue in this interest group politics Which groups are pro limits Which groups would you imagine are lobbying against Are these peak associations or public interest groups What does Goldsmith mean by industry capture
Explain how might a portfolio manager use financial futures to hedge risk in each of the following circumstances.
Define what is an economic and political system that calls for public ownership of virtually all enterprises, under the direction of a strong central government?
A monopoly firm is different from a competitive firm in that there are many substitutes for a monopolist's product while there are no substitutes for a competitive firm's product or else.
Consider the problem of the book assuming that the utility is Cobb-Douglas (U (C, l) = C α l β )
1. Consider a monopolist in equilibrium who faces the linear demand curve D1 shown below, and whose marginal cost is constant at c.
A device is invented that would reduce the firm's emissions to one unit for each town of output (e = q). How much would the firm be willing to pay for such a device?
Product characteristics - short run P&Q determinations and the resulting 3 possibilities for excess profit
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