Suppose that there are no taxes and no profits and that the M R S ℓ...
Suppose that there are no taxes and no profits and that the
M R S ℓ , c = c ℓ, then the optimal supply of labor is
a.inelastic
b.equal to zero
c.increasing in wages
d.decreasing in wages
Homework Answers
a) As there are no profits and no taxes,then the optimal supply of labour or the marginal rate of substitution will be inelastic.
increase or decrease in wages depends on hours of work that labor has performed.
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Suppose that there are no taxes and no profits and that the
M R S ℓ...
Suppose the consumer has preferences of type of Leontief, where c = 90 ℓ. Also, suppose...
Suppose the consumer has preferences of type of Leontief, where c = 90 ℓ. Also, suppose that firms make no profit, there are not taxes, and the equilibrium real wage is 10. The optimal choice of leisure (ℓ) is a.0.9 b.9 c.1/9 d.0.1
(modiÖed R & G) Suppose the individuals view their loss of income from income taxes as...
(modiÖed R & G) Suppose the individuals view their loss of income from income taxes as offset by the benefits of public services purchased with revenues. How are their labor supply decisions affected? (a) Draw the optimal choice of a representative individual in leisure-consumption space before tax imposition. (b) Describe the change of budget constraint when the income tax is imposed and all the revenue from income tax is returned as the individual's consumption through public service provision. (c) Show...
(modiÖed R & G) Suppose the individuals view their loss of income from income taxes as offset by the benefits of pub...
(modiÖed R & G) Suppose the individuals view their loss of income from income taxes as offset by the benefits of public services purchased with revenues. How are their labor supply decisions affected? (a) Draw the optimal choice of a representative individual in leisure-consumption space before tax imposition. (b) Describe the change of budget constraint when the income tax is imposed and all the revenue from income tax is returned as the individual's consumption through public service provision. (c) Show...
Problem 3 - Labor Market & Taxes PROBLEM 3: LABOR MARKET AND TAXES (20 POINTS) Suppose...
Problem 3 - Labor Market & Taxes
PROBLEM 3: LABOR MARKET AND TAXES (20 POINTS) Suppose a worker has preferences over consumption and leisure that can be repre- sented by the following utility function: U = ln (C) + In (1) There are 16 hours per day available for leisure (1) and labor (L) (the remaining 8 hours are for sleeping). The hourly wage is w, and assume that the price of each unit of consumption is $1. The only...
Consider the arrangement shown in the figure below. Assume R = 4.00 Ω and ℓ =...
Consider the arrangement shown in the figure below. Assume
R = 4.00 Ω and ℓ = 1.00 m, and a uniform 3.00-T magnetic
field is directed into the page. At what speed should the
bar be moved to produce a current of 0.500 A in the resistor?
m/s
The Laffer Curve graphs the amount of government revenue as a function of the tax rate....
The Laffer Curve graphs the amount of government revenue as a function of the tax rate. It is hypothesized to be inverse U-shaped -- first increasing, reaching a maximum, and then decreasing. The maximum of the Laffer curve represents the largest size of government that can be sustained, because beyond it, higher tax rates actually reduce government revenue. Consider a consumer with preferences U = ln(x) + ln(1 − ℓ), where x is consumption and ℓ is labor supply. Let...
Suppose that some firms in a perfectly competitive market are making positive economic profits. Which one...
Suppose that some firms in a perfectly competitive market are making positive economic profits. Which one of the following would not be expected to occur? A. The supply curve will shift to the right. B. More firms would enter the market C. The equilibrium quantity sold will fall D. The equilibrium price will fall. E. All firms’ economic profits would eventually be driven to zero at equilibrium.
3. Suppose R is a PID and M is a cyclic R-module of 'order' r E R, ie., M RI (r). Show that if N ...
3. Suppose R is a PID and M is a cyclic R-module of 'order' r E R, ie., M RI (r). Show that if N is a submodule of M then N is cyclic of order s for some s \Ir Conversely, if s | r show that M has a cyclic submodule of order s.
3. Suppose R is a PID and M is a cyclic R-module of 'order' r E R, ie., M RI (r). Show that if...
Suppose that the government decreases lump-sum taxes. What are the effects of this on the consumer’s...
Suppose that the government decreases lump-sum taxes. What are the effects of this on the consumer’s optimal choice? (Determine how consumer’s optimal C and l change.)
Immigration Surplus Suppose there is no immigration and a total of 100 native workers (100 units...
Immigration Surplus Suppose there is no immigration and a total of 100 native workers (100 units of labor) with perfectly inelastic labor supply. The equilibrium wage is $10. Draw a diagram of the labor market that includes labor demand and supply. Please label the area of your diagram that represents firms income (profits) and labor income (total wages). 1. Given the situation described in A what is total income of native workers?
Problem 3 - Labor Market & Taxes
PROBLEM 3: LABOR MARKET AND TAXES (20 POINTS) Suppose a worker has preferences over consumption and leisure that can be repre- sented by the following utility function: U = ln (C) + In (1) There are 16 hours per day available for leisure (1) and labor (L) (the remaining 8 hours are for sleeping). The hourly wage is w, and assume that the price of each unit of consumption is $1. The only...
Consider the arrangement shown in the figure below. Assume
R = 4.00 Ω and ℓ = 1.00 m, and a uniform 3.00-T magnetic
field is directed into the page. At what speed should the
bar be moved to produce a current of 0.500 A in the resistor?
m/s
3. Suppose R is a PID and M is a cyclic R-module of 'order' r E R, ie., M RI (r). Show that if N is a submodule of M then N is cyclic of order s for some s \Ir Conversely, if s | r show that M has a cyclic submodule of order s.
3. Suppose R is a PID and M is a cyclic R-module of 'order' r E R, ie., M RI (r). Show that if...
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