Unemployment insurance system in the united states

Assignment Help Business Economics
Reference no: EM132843003

Currently, the unemployment insurance system in the United States is funded by a tax on employers. Suppose the government is concerned about the effect of this tax on firm profits and decides to eliminate the tax.

a) Using a supply and demand graph to illustrate how the elimination of this tax will affect the amount that firms pay for workers, the amount workers receive from firms and the equilibrium employment level.

b) On your graph, show how much tax revenue the government will forego by eliminating this tax. (Reminder that tax revenue is total hours worked times per-hour taxes.)

c) In what sense are workers made better off by the elimination of the tax?

d) What additional pieces of information would you need to establish whether workers or firms are the primary beneficiaries of the elimination of this tax?

Reference no: EM132843003

Questions Cloud

What are the disadvantages of competitive pricing : 1. Define Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly. 2. What are methods of pricing?
Describe two inventory optimization techniques : Describe two (2) inventory optimization techniques or management policies that Inditex seem to beusing to better manage its inventories.
How cap-and-trade and environmental banks work : Describe how cap-and-trade and environmental banks work. They represent what kind of policy mechanism? What two policy dilemmas do they solve and how?
Diversity of developing nations : 1. Matrix highlighting the claims/description or arguments of the 4 major classic theories of development
Unemployment insurance system in the united states : Currently, the unemployment insurance system in the United States is funded by a tax on employers.
The germany that does not work-public investment : Read "The Germany That Doesn't Work: Public Investment," in the internet. Based on this, discuss the pros and cons of each option. Explain which option you thin
How the gdp has the most crucial influence on the company : Explain how the GDP has the most crucial influence on the company's FDI in the country since different country's economic policies
Main types of horizontal and vertical fdi : There are two main types of Horizontal and vertical FDI. Horizontal, a business expands its domestic operations to a foreign country; in this case
Improve corporate governance standards : Furthermore, foreign investment can result in the transfer of soft skills through training and job creation. Please explain.

Reviews

Write a Review

Business Economics Questions & Answers

  Substitution effect of the price change

Neville has demand function q = .02m - 2p, where m is income and p is price. Income is $8,000 and he initially had to pay a price of $40 per bottle of claret. The price of claret rose to $80. The substitution effect of the price change is?

  Normalized trade relationship with china

This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.

  Compare average air quality between the two years

We would like to use these data to compare average air quality between the two years.

  Figure plots the average farm prices of potatoes

The following figure plots the average farm prices of potatoes in the United States for the years 1989 to 1998 versus the annual per capita consumption. Each point represents the price and quantity data for a given year. Explain whether simply drawin..

  After tax returns on a taxable bond

In order for you to be indifferent between the after tax returns on a taxable bond paying 2.49% and a tax-exempt bond paying 2.12%, what would your tax bracket need to be? (How to calculates )

  Discuss the effect that an increase in interest rates

Discuss the effect that an increase in interest rates will have on financial stability of the company, the common stock of the company, and the bond issues in the marketplace.

  Explain the federal governments use of fiscal policy

Between 2007 and 2009 the U.S. economy experienced a severe recession. In an effort to stimulate the economy, the federal government passed a stimulus package. Explain the federal government’s use of fiscal policy (the stimulus) to promote growth and..

  What is the level of expected inflation for the SRAS curve

Assume that wages and prices are sticky and that we start at a long-run equilibrium. Assume that at this initial point, the growth rate of the money supply is 6%, the growth rate of the velocity of money is 2% and that the real economic growth rate i..

  How could we classify the demand for tv plasmas

Compute the price elasticity of demand for TV Plasmas. Explain how could we classify the demand for TV Plasmas.

  Question 1nbspbusiness economics is a useful toolbox for

question 1nbspbusiness economics is a useful toolbox for understanding the business environment and making better

  Actually be jailed for contempt of court

In the film My Cousin Vinny, Vinny, a New York (out of state) lawyer, was able to practice law in Alabama and represent a client on a murder case—without the benefit of being admitted to Alabama State Bar.  In the movie, Vinny was thrown in jail by t..

  Write a letter to marge addressing her concern

Marge is employed and maintains a household for herself and her daughter. Monica is 22 years and a full-time student. Monica is expected to graduate from Law school in May 2015. Over the past two years, Monica has earned $9,000 a year from her part-t..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd