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- 24 21 18 W12 6. 6. 3 100 Labor (millions of hours per month) 200 300 400 In the above figure, at what minimum wage is the unemployment level equal to 200 million hours? Select one: a. $24 per hour Ob. $12 per hour O c. $6 per hour O d. $18 per hour Wage (dollars per hour) 512Edgar is working part-time. Diane is on layoff. Who is included in the Bureau of Labor Statistics' "employed" category? Select one: O a. both Edgar and Diane O b. only Edgar O C. neither Edgar nor Diane O d. only Diane 4during expansions. The rate of unemployment tends to during recessions and During prolonged recessions, it is difficult for workers to find a job and many workers become discouraged. Which of the following is a correct statement? O A. Discouraged workers are counted in the labor force and cause the participation rate to fall. B. Discouraged workers are counted in the labor force and cause the participation rate to rise. C. Discouraged workers are not counted in the labor force and cause the participation rate to fall. OD. Discouraged workers are not counted in the labor force and cause the participation rate to rise.
- Use the 2019 U.S. federal tax rates in the table to calculate answers to the questions below. Give all answers to two decimals. V Taxable Income $0-$9,700 $9,701-$39,475 $39,476-$84,200 $84,201-160,725 $160,726-$204,100 $204,101-$510,300 Over $510,300 1st attempt Tax rate 10% 222335 12 24 37 See HinK Does the existence of credit market imperfections imply that there is a useful role for government tax policy? The existence of credit market imperfections imply that there is a useful role for government tax policy as it would be for the government to do so.The United States has established a progressive income tax system, where a worker’s tax rate onearnings increases as she earns more money. There are 168 hours in a given week. Assume thatfor the first 56 hours worked, the tax rate is t1, which means that the net real wage is w*(1-t1).After working the 56th hour, the worker jumps to a higher tax rate t2. After the 112th hourworked, the individual jumps to an even higher tax rate, t3.(a) During most election years, some politicians argue that a having a flat tax system isbetter. Assume that there is a proposal to institute a flat tax, where all workers pay a taxrate equal to t4, which is greater than t3. On the same set of axes, graph the budgetconstraints associated with the progressive tax system and the flat tax system. Make sureto label all of the slopes.(b) Would moving to this proposed flat tax system likely encourage more or fewer hoursworked for relatively high-wage workers? Make sure to explain your answer (a writtenexplanation…
- Reducing tax rates: Suppose the government decides to reform the tax systemto reduce the marginal income tax rate across the board. Explain the efect onwages, the employment-population ratio, and unemployment.Today the federal government collects nearly O $1 billion a year in tax revenues. O $500 billion a year in tax revenues. O $1 trillion a year in tax revenues. O $4 trillion a year in tax revenues.Which of the following is a problematic feature of a welfare state that is mitigated by the supplement's gradual decline O inflation O the implicit marginal tax 0 a revenue shortfall O recession
- Refer to Figure 27-7. An effective price floor set at W3 would O a. increase employment from Q3 to Q4. O b. increase employment from Q1 to Q2. O c. decrease employment from Qs to Q4. O d. decrease employment from Qs to Q2. Wage Rafe Figure 27-7 0,0₂ 03 04 05 Quantity of Labor MFC MRPRefer to Table 10. The labor force participation rate is (CLOS # 2) Table 10 Category Number Employed 120,000 Unemployed 10,000 Not in the iabor 20,000 force Select one: O a. 75.3%. O b. 82.8%. O c. 86.67%. O d. 77.2%.2. Practice on EITC, income and substation effects Suppose that the government introduces an EITC such that for the first $8,000 in earnings, the government pays 50¢ per dollar on wages earned. For the next $3,000 of earnings, the credit is held constant at $4,000, and after that point, the credit is reduced at a rate of 20¢ per dollar earned. When the credit reaches zero, there is no additional EITC. a. Draw the budget constraint that reflects this EITC for a worker who can work up to 4,000 hours per year at an hourly wage of $10 per hour. b. If this worker works for 2000 hours a year before the program is introduced, what will be the income and substitution effects? Will he work more hours or less in the face of the EITC program?