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Consider a worker who earns $8.00 per hour and has no other source of income. Compare the following two transfer policies:
i. A negative income tax that sets the tax (per day) at T = 0.2Y - 15
ii. An earned income tax credit that subsidizes the worker at 40 cents for each dollar earned, up to a maximum daily subsidy of $15, maintains the subsidy at $15 until the worker's labour earnings equal $45 per day, and then phases out at a rate of 20 cents per dollar of earnings.
Illustrate the budget constraints generated by these programs, showing both in the same diagram.
Profits in subsidiary company The remaining profits that belong to the holding company should be split between pre-acquisition profits and post acquisition profits. The pre
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Jane makes a living renting expensive state of the art surveillance equipment to detectives and nervous spouses. Her average rental period is 27 days. The rental price includes all
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