Business, 25.01.2021 20:30 pressure772

Consider a person who can work up to 80 hours each week at a pre-tax wage of $20 per hour but faces a constant 20% payroll tax. Under these conditions, the worker maximizes her utility by choosing to work 50 hours each week. The government prposes a negative income tax whereby everyone is given $300 each week and anyone can supplement her income further by working. To pay for negative income tax, the payroll tax rate will be increased to 50%. (a) On a single graph, draw the worker`s original budget line and her budget line under the negative income tax
(b) Show that the worker will choose to work fewer hours if the negative income tax is adopted.
(c) Will the worker`s utility be greater under the negative income tax?

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 23:30

Select the correct answer. joshua runs a large manufacturing business that is listed on the stock exchange. his company made good profits in the previous financial year. he now plans to reward his shareholders with handsome dividends. under which category of activities in the cash flow statement would the company’s accountants place this outflow of cash? a. investing activities b. operating activities c. financing activities d. non-operating activities

Answers: 3

Answer

Business, 22.06.2019 04:30

The lee family is looking to buy a house in one of two suburban areas just outside of a major city, and air quality is a top priority for them. overall air quality is calculated by taking measures in 100 locations within each suburb and then calculating a measure of central tendency. in one suburb, there is a major bus station that creates very poor air quality at its location but has no impact in the surrounding parts of the suburb. in this situation, which measure of overall suburb air quality would be most useful?

Answers: 3

Answer

Business, 22.06.2019 10:30

On july 1, oura corp. made a sale of $ 450,000 to stratus, inc. on account. terms of the sale were 2/10, n/30. stratus makes payment on july 9. oura uses the net method when accounting for sales discounts. ignore cost of goods sold and the reduction of inventory. a. prepare all oura's journal entries. b. what net sales does oura report?

Answers: 2

Answer

Business, 22.06.2019 10:50

Jen left a job paying $75,000 per year to start her own florist shop in a building she owns. the market value of the building is $120,000. she pays $35,000 per year for flowers and other supplies, and has a bank account that pays 5 percent interest. what is the economic cost of jen's business?

Answers: 3

Answer

You know the right answer?

Consider a person who can work up to 80 hours each week at a pre-tax wage of $20 per hour but faces...

Questions