Question 12 Scenario 4 Suppose the supply curve of workers is given by w 14 + 6Es, while the demand curve is given by w = 55-3Ep Calculate the equilibrium wage. Round your answer to the nearest hundredth (two decimal places). Question 13 Scenario 4 Suppose the supply curve of workers is given by w = 14 +6Es, while the demand curve is given by w -55-3Ep Calculate the equilibrium employment. Round your answer to the nearest hundredth (two decimal places). Question 14 Scenario 4 Suppose that the supply curve of workers is given by w = 14 +6Es, while the demand curve is given by w 55-3E Suppose now a tax of $5 is added into this labor market. How much do workers receive as wage after this payroll tax? Round your answer to the nearest hundredth (two decimal places).

Question 12 Scenario 4 Suppose the supply curve of workers is given by w 14 + 6Es, while the demand curve is given by w = 55-3Ep Calculate the equilibrium wage. Round your answer to the nearest hundredth (two decimal places). Question 13 Scenario 4 Suppose the supply curve of workers is given by w = 14 +6Es, while the demand curve is given by w -55-3Ep Calculate the equilibrium employment. Round your answer to the nearest hundredth (two decimal places). Question 14 Scenario 4 Suppose that the supply curve of workers is given by w = 14 +6Es, while the demand curve is given by w 55-3E Suppose now a tax of $5 is added into this labor market. How much do workers receive as wage after this payroll tax? Round your answer to the nearest hundredth (two decimal places).

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter15: Poverty And Economic Inequality

Section: Chapter Questions

Problem 3SCQ: Imagine that the government reworks the welfare policy that was affecting Jonathan in question 1, so...

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Imagine that the government reworks the welfare policy that was affecting Jonathan in question 1, so that for each dollar someone like Jonathan earns at work, his government benefits diminish by only 30 cents. Reconstruct the table from question 1 to account for this change in policy. Draw Jonathans labor-leisure opportunity sets, both for before this welfare program is enacted and after it is enacted.
By law, the government splits the levy of the FICA tax equally between workers and firms.(a) Using a supply and demand diagram, draw the labor market and label the equilibriumwage and employment level assuming FICA did not exist. Then, on the same graph,draw how the imposition of FICA alters labor market outcomes. Make sure to carefullylabel equilibrium wages, wages paid, wages received, and employment.(b) If the government splits the levy of the FICA tax evenly between workers and firms, thenhow is it that some researchers claim that workers pay approximately 90% of payrolltaxes?(c) Assume that labor unions lobby the government to have the entire levy of FICA shifted tofirms. Will workers ultimately be happy under this new tax structure? Why or why not?
Laura earns a base salary of $50,000 as an event planner and is subject to the following hypothetical income ta is considering taking on an additional wedding that will increase her income by $5,000. In order for Laura to c worth her time, it must earn her $3,000 after taxes. Please round all answers to two decimal places. What is the marginal tax rate associated with taking on this wedding? Marginal tax rate: Income $0-$10,000 $10,001-$30,000 $30,001-$50,000 $50,001+ Average tax rate: 4 What is Laura's average tax rate if the extra wedding is accepted? ves R Given the information, will Laura undertake this extra wedding? 5 7 Tax rate 5% 10% 20% 50% B T 6 % 45 % 8 9
Consider a labor market in which workers are paid the minimum wage. When will it matter for tax incidence whether a payroll tax is imposed on workers or on employers? A.Normally, the statutory imposition of a tax is irrelevant to the actual economic incidence because the party on whom legal liability rests will shift the burden if it can, and the less-elastic party will bear most of the burden of the tax. However, a tax imposed on employers can be shifted to workers earning the minimum wage; employers are not legally constrained from lowering wages further, so they will not bear the full burden. On the other hand, a tax imposed on workers will not be at least partially shifted to employers if the demand for labor is inelastic. Therefore, minimum-wage employers with elastic demand for labor are likely to share some of the burden of a tax imposed on employees. B.Normally, the statutory imposition of a tax is relevant to the actual economic incidence because the party on whom legal…
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In the United States, labor supply tends to be inelastic relative to labor demand, and according to law, payroll taxes are essentially assessed evenly between workers and firms. Given the above situation, are workers or firms more likely to bear the additional burden of an increased payroll tax in the United States? Could this burden be shifted to the firms by assessing the increase in payroll taxes on just firms rather than having firms and workers continue to be assessed payroll taxes equally?
In the United States, payroll taxes are essentially assessed evenly between workers and firms. If the supply of labor is less elastic than the demand for labor, are workers or firms more likely to bear the additional burden of an increased payroll tax in the United States? Could this burden be shifted to the firms by assessing the increase in payroll taxes on just firms rather than having firms and workers continue to be assessed payroll taxes equally?
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Assume that workers whose are less than $8000 currently pay no federal income taxes. Suppose a new government program guarantees each worker $4000, whether or not he or she earns any income. For all earned income up to $8000, the worker must pay a 50- percent tax. How is the program likely to affect the labor supply curve of workers? For workers whose wages such that their pre-tax earned incomes are less than $8000, labor supply will be.. a. zero because there will be no incentive to work b. zero because there will be a negative income effect (in terms of work hours) c. zero because after-tax wages will be higher d. positive because after-tax wages will be higher e. positive because there will be a positive substitution effect (in terms of work hours)