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Suppose in the first five years of working for ABC Corporation Emily earns $50,000 a year after taxes, but ABC makes no yearly contribution toward a retirement plan for her. However, after five years ABC offers Emily a choice of receiving a $5,000 after-tax pay increase or a $5,000 tax-free yearly contribution to a retirement fund.
Explain and illustrate graphically (with budget lines and indifference curves) how Emily could be better off with the $5,000 after-tax pay increase than with the $5,000 tax-free contribution to her retirement fund. Also explain and illustrate with your graph how either form of additional compensation may leave Emily equally well off. (Hint/Suggestion: On your graph put dollars of after-tax income, which can be spent on other goods, on the vertical axis and dollars that can be applied toward retirement on the horizontal axis.)
What would be the equilibrium price? What is the equilibrium quantity? Calculate the deadweight loss created by the tax.
q1. a firm hires 2 workers also rents 15 acres of land for a season. it produces 150000 bushels of crop. if it had
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Brenna's bakery makes the tastiest chocolate chip cookies in Silver Spring. Brenna sells her cookies for $5 a dozen at her store. To make the cookies she needs $1 worth of flour, $0.50 worth of sugar, $1 worth of chocolate chips and $0.25 for all the..
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In the year 2000, the US had a Budget Balance of $236 billion dollars. The cyclical component of the budget totaled $94 billion. What must the structural balance be (in billions of dollars)?
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