The effect of the tax on the equilibrium wage

Assignment Help Macroeconomics

Reference no: EM13200741

Payroll Tax- You are an economic consultant to a city that just imposed a payroll tax of $1 per hour of work. This payroll tax is paid by workers through a payroll deduction; for each hour of work, the employer deducts $1 and sends the money to the city government. The initial wage before the tax is $10, and total employment is 20,000 hours per day.

Use a graph to show the effect of the tax on the equilibrium wage and employment.

Reference no: EM13200741

Questions Cloud

What is a competitive profit-maximizing firm : Harold owns a cranberry bog in which he grows cranberries. Haroldâ€™s farm is a competitive, profit-maximizing firm. As such, Harold much decide.

Which reduces the overall demand for petroleum : Assume that the government of a nation rations the crude oil available to car owners each month which reduces the overall demand for petroleum. However, the nation continues to import oil from the world market.

Discuss key drivers in expansion of private equity firms : The extent of the failure using financial results and share price analysis and the reasons for the failure, including where appropriate actions both before and after the acquisition

Who were involved in another accident within last five years : An advisory group decided to investigate this claim, believing it was too large. A sample of 200 traffic accidents this year showed 74 persons were also involved in another accident within the last five years.

The effect of the tax on the equilibrium wage : Payroll Tax- You are an economic consultant to a city that just imposed a payroll tax of $1 per hour of work. This payroll tax is paid by workers through a payroll deduction.

Determine the profit in the fourth year of operation : Karla Harby Communications, a small company of science writers, found that its rate of profit (in thousands of dollars) after t years of operation is given by the function

What are some of the causes of this variance : Social Security in the U.S. is often the most significant income program available for the elderly. When looking at replacement income for prior earnings, note that the United States ranks 26th on the list, while Greece is 3rd. What are some of the c..

What is investment cost of machine for capital budget : which would have otherwise been sold for $180,000. The firm will borrow $750,000 to finance the acquisition. Total interest expense for 5-years is expected to approximate $350,000. What is the investment cost of the machine for capital budgeting p..

Biochemical teory and behavioral theory : why some adolescents are motivated to commit crimes while others in similar circumstances are not in the two areas biochemical teory and behavioral theory must be in apa format and cit at least to sources

User Account

All Pages