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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.)
The efficient Market hypothesis
What are the three reasons that a market might have a monopoly? Give an example of each. Is creating a government-created monopoly necessarily bad public policy? Explain.
What requirements are imposed on an employer by the Family Medical Leave Act? What remedies can an employee seek if an employer violates the Family Medical Leave Act?
What does the change in his con- sumption reflect a substitution or an income effect.
Illustrate the effects of the following events on the dollar-peso exchange rate, i.e., the value of one peso in terms of dollars. label the axes and explain how you arrived at your answer. (Hint: the x-axis should be labeled “pesos” and the y-axis la..
Ghana is a producer and exporter of crude oil. Since Ghana is a relatively small crude-oilproducing country, its actions do not affect world prices; as an exporter, Ghana faces a foreign demand curve that is perfectly elastic at a price of $ 15 per b..
Submit answers to the following questions in the unit drop box. You must explain your answer and provide your supporting computations. Yes/No answers or simple numbers are not acceptable and will not receive full credit. Why does a sales tax shift a ..
Whenever you analyze your competitors, Illustrate what are the areas of greatest concern.
Research any two publicly traded companies, looking for one that has an attractive price earnings ratio and one that has an unfavorable price earnings ratio. Explain how you knew the price earnings ratio was attractive and unfavorable.
Which of the following examples are used as evidence favoring the bounded rationality ?assumption?
What would happen to GDP if the government hired unemployed workers, who had been amount $TR ain unemployment benefits, as government employees and now paid them $TR to do nothing? Explain.
Mom belongs to a dealer's association and the members have kept careful records of how the forecaster has performed - Once she gets the forecast she can proceed with her decision as place a big order or a small order.
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