**Tax Proposal Table**| Tax Proposal | Quantity Hired | After-Tax Wage Paid by Employers | After-Tax Wage Received by Workers ||----------------------------------|----------------|----------------------------------|------------------------------------|| **Levied on Employers** | | | || *(Dollars per hour)* | *Number of workers* | *(Dollars per hour)* | *(Dollars per hour)* || 4 | 0 | | || 0 | 4 | | || 2 | 2 | | |**Scenario Description:**Suppose the government is concerned that research assistants already make too little money and, therefore, wants to minimize the share of the tax paid by employees. Of the three tax proposals, which is best for accomplishing this goal?**Options:**- The proposal in which the entire tax is collected from workers- The proposal in which the tax is collected from each side evenly- The proposal in which the tax is collected from employers- None of the proposals is better than the others **Graph Explanation:**The graph illustrates the labor market for research assistants, highlighting the relationship between wage and labor supply and demand. The x-axis represents the number of workers (labor), and the y-axis shows the wage in dollars per hour.- **Supply Curve (Blue Line):** Indicates the number of workers willing to work at different wage levels. As wages increase, more workers are willing to supply labor.- **Demand Curve (Orange Line):** Represents the number of workers employers are willing to hire at various wage levels. As wages decrease, the demand for labor increases.- **Equilibrium Point:** The intersection of the supply and demand curves, showing the wage ($10 per hour) and quantity of labor (240 workers) at which the market clears (labor supplied equals labor demanded).The graph also features horizontal and vertical dashed lines representing specific wage and labor values.**Graph Input Tool:**- **Market for Research Assistants:** - Wage: $4 per hour (input value) - Labor Demanded: 500 workers - Labor Supplied: 0 workers- **Demand Shifter:** - Tax Levied on Employers: $0 per hour- **Supply Shifter:** - Tax Levied on Workers: $0 per hour**Instructions for Analysis:**Use the graph to analyze changes in the number of research assistants hired and calculate the after-tax amount paid to employers and research assistants based on different proposals. This involves computing wages plus any taxes for employers and wages minus any taxes for workers.

If the tax is levied on the employers their cost of production will increase therefore they will…

After-Tax Wage Paid by After-Tax Wage Received by Tax Proposal Quantity Hired Employers Workers Levied on Levied on (Number of (Dollars per hour) (Dollars per hour) Employers Workers workers) (Dollars per hour) (Dollars per hour) 4 2 Suppose the government is concerned that research assistants already make too little money and, therefore, wants to minimize the share of the tax paid by employees. Of the three tax proposals, which is best for accomplishing this goal? O The proposal in which the entire tax is collected from workers O The proposal in which the tax is collected from each side evenly O The proposal in which the tax is collected from employers O None of the proposals is better than the others

After-Tax Wage Paid by After-Tax Wage Received by Tax Proposal Quantity Hired Employers Workers Levied on Levied on (Number of (Dollars per hour) (Dollars per hour) Employers Workers workers) (Dollars per hour) (Dollars per hour) 4 2 Suppose the government is concerned that research assistants already make too little money and, therefore, wants to minimize the share of the tax paid by employees. Of the three tax proposals, which is best for accomplishing this goal? O The proposal in which the entire tax is collected from workers O The proposal in which the tax is collected from each side evenly O The proposal in which the tax is collected from employers O None of the proposals is better than the others

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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WAGE (Dollars per hour) 20 18 16 + 14 12 10 2 0 0 1 80 120 180 240 300 360 420 480 540 600 LABOR (Number of workers) 2 Levied on Employers (Dollars per hour) 0 1 Tax Proposal Supply Demand 2 1 Levied on Workers (Dollars per hour) 0 Market for Laboratory Aides 000 Wage (Dollars per hour) Quantity Hired (Number of workers) Labor Demanded (Number of workers) Demand Shifter Tax Levied on Employers (Dollars per hour) For each of the proposals, use the previous graph to determine the new number of laboratory aides hired. Then compute the after-tax amount paid by employers (that is, the wage paid to workers plus any taxes collected from the employers) and the after-tax amount earned by laboratory aides (that is, the wage received by workers minus any taxes collected from the workers). 4 480 0 After-Tax Wage Paid by Employers (Dollars per hour) Labor Supplied (Number of workers) Suppose the government is concerned that laboratory aides already make too little money and therefore Supply Shifter…
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