TeamAssigment3_Summary

Suppose Congress enacts a tax reform law, and the average federal tax rate drops from 30% to 10%. Researchers investigate the impact of the tax cut and find that the income subject to the tax increases from $600 billion to $700 billion. The theoretical explanation is that workers have increased their work effort in response to the incentive of lower taxes. On the following graph, use the green point (triangle symbol) to plot the point corresponding to the income of $600 billion. Then use the orange point (square symbol) to plot the point corresponding to the income of $700 billion. FEDERAL TAX REVENUE (Billions of dollars) 220 200 180 160 140 120 100 + 80 - 60 + 40 + 20 0 0 10 O True 20 O False 30 40 50 60 70 80 FEDERAL TAX RATE (Percent) 90 Laffer Curve 100 110 "A Income $600 Income $700 True or False: The change in income is represented by a movement along the upward-sloping portion of the Laffer curve. ?

Indicate how each of the following might affect the data shown in the table and graph in Figure 2 of this appendix: BTU’s athletic director hires away the coach from a perennial champion.

Case study 1.6: Factor substitution in the National Health Service  The National Health Service (NHS) in the UK was founded in 1948 and was the first state-run free health service in the world. It originated at a time of national euphoria following victory in World War II, which generated a sense of confidence and solidarity among politicians and public. In particular it was felt that class distinctions were finally disappearing. The extensive rationing of products, both during and after the war, played a big part. Not only did this result in queuing for goods by rich and poor alike, but it gave the government a sense that state control of distribution was not only possible but in many cases desirable. The basic objective was to provide all people with free medical, dental and nursing care. It was a highly ambitious scheme that rested on various premises that have since proved flawed. These were: 1 The demand for health care was finite; it was assumed that some given amount of…

Which of the following statements is correct? [Select one answer]   Chronic poor are those whose incomes on average are above the poverty line but they never escape poverty. No option is correct Persistent poor are those whose incomes on average are below the poverty line but they never escape poverty. Transient poor are those whose incomes on average are below the poverty line but they may escape poverty sometimes.

The following table contains monthly housing expenditures for 10 families. (i) Find the average monthly housing expenditure. (ii) Find the median monthly housing expenditure. (iii) If monthly housing expenditures were measured in hundreds of dollars, rather than in dollars, what would be the average and median expenditures? (iv) Suppose that family number 8 increases its monthly housing expenditure to $900, but the expenditures of all other families remain the same. Compute the average and median housing expenditures.

On September 28, 2012. The Wall Street Journal reported that in the second quarter, the number of cellphone subscribers on contract plans rose just 0.7% from the year before, to 219 million, according to UBS AG. The number of prepaid customers grew about 11.7% to 71 million.   How many prepaid customers were there in the second quarter of 2011?

rdcdn.com/blackboard.learn.xythos.prod/5a25b62cdb9cf/5497575?X-Blackboard-Expiration=1631804400000&X-Bla 2/ 4 100% Directions: Write below whether each factor will increase or decrease demand for the market listed, what determinant of demand caused the increase and decrease and show the demand curve shift on the graph. Determinant and Change Increase or Decrease: Graph Scenario 9. Market: Paper towels this month Scenario: Prices of paper towels are expected to rise in the future. TRIBE: 10. Market: Cheese this month Increase or Decrease: P. Scenario: Prices are expected to fall next TRIBE: month. 11. Market: Pancake market Increase or Decrease: Scenario: Prices of syrup increase. D Q TRIBE: 12. Market: Ketchup market Increase or Decrease: Scenario: Prices of hot dogs decrease TRIBE: D 13. Market: Almond milk Increase or Decrease: P Scenario: Price of dairy milk inereases TRIBE: 14. Market: Almond butter Increase or Decrease: Scenario: Price of peanut butter decreases TRIBE: 15. Market:…

Conceptual (Basic, [5]) Consider our final lecture on human capital, economic growth and wealth inequality. We showed that the variance in the distribution of the logarithm of human capital is

No written by hand solution Suppose there are two sectors, call them A [agriculture] and M [manufacturing]. People earn say $5 an hour in agriculture and $10 an hour in manufacturing. Suppose we are interested in the share of the bottom 40% and the richest 20%. Let x be the share of people in manufacturing. Derive a formula that gives you the shares of income earned by the lowest 40% of the population and the richest 20% of the population as a function of x. This is a connection between structural transformation and the behavior of inequality.

(6) What does efficiency-wage theory suggest as an alternative to this decision of wage and/or headcount reduction?

Show how to arrive to Equation (8.16) of the textbook, and then find the optimal amount to spend on education E and the number of children m. Provide a brief interpretation about how these equation help understand the demographic transition.

The community college fine arts department sold three kinds of tickets to its latest dance presentation. The adult tickets sold for $20, the student tickets for $12 and the child tickets for $10.The fine arts department was thrilled to have sold 350 tickets and brought in $4,650 in one night. The number of child tickets sold is the same as the number of adult tickets sold. How many of each type did the department sell?

Question: In an economy experiencing a significant digital transformation with widespread adoption of remote work, the government decides to introduce tax incentives for companies that maintain or create jobs in rural and less developed regions. What is the most likely short-term impact of this policy on regional economic disparities and urban employment levels? A) A reduction in regional economic disparities and a decrease in urban employment levels. B) Little change in regional economic disparities, but an increase in urban-rural migration. C) A moderate reduction in regional economic disparities and minimal impact on urban employment levels. D) Increased regional economic disparities due to a concentration of skilled jobs in urban areas.

In the below graph, the white area in the upper left hand side represents 50% of the total area of the rectangle, the shaded area represents 27% of the area of the rectangle, and the white area in the lower right hand side represents 23% of the area in the rectangle.  Based on this information, what is the Gini coefficient?  Show your work.

In an economy, over the last decade, each of the top five decile groups has experienced a fall in their share of total income. In contrast, the bottom five decile groups have experienced a substantial increase in their share of total income.   It can be concluded that, over this period, the distribution of income is most likely to have become   A more equal B more equal but less equitable C more equitable D more equitable but less equal

Consider the housing construction industry. Assume the industry is perfectly competitive in input and output markets. Suppose that, through collective bargaining, a labor union successfully negotiates an industry-wide wage for various kinds of labor (electricians, plumbers, and so on). In particular, it succeeds in negotiating a wage increase for carpenters from $9 to $12 per hour. The following graph shows the demand for labor and the supply of labor for the entire industry. On the following graph, use the purple points (diamond symbol) to plot the new industry supply curve. Then use the black point (plus symbol) to show the effect of the union negotiations on the quantity of labor demanded in the industry. WAGE RATE 18 15 N 12 6 3 0 0 5 10 15 20 QUANTITY OF LABOR Supply Demand 25 30 Demand Supply ++ Quantity Negotiations ♦ New supply of labor Quantity Advertising ?

PROBLEM #2 A farmer grows strawberries, and sells the strawberries to local farm-to-table restaurants and bakeries. The equipment and machinery used to farm the strawberries includes tractors, planters, and sprayers. The farmer has gathered data over the past two years and has found that, for the amount of physical capital currently owned, the general relationship between the number of farm workers (L), and the quantity of strawberries produced per acre (measured in pounds), is represented by the following data: L Q MPL APL 1 900 2 3,400 5,610 4 7,400 5 9,100 6 10,050 7 10,640 8 11,000 a. Complete the table above by finding the marginal product (MPL) and average product (APL) of labor for each level of labor. b. Determine the level of labor at which diminishing marginal returns set in. c. Determine the level of labor at which diminishing average productivity sets in; that is, at what level of labor does average labor productivity begin to fall compared to the previous level of labor?…

Statistical economics: In a factory employing 3,000 persons, in a day 5 per cent work less than 3 hours, 580 work from 3:01 to 4.50 hours, 30 per cent work from 4.51 to 6.00 hours, 500 work from 6.01 to 7.50 hours, 20 per cent work from 7-51 to 9.00 hours and the rest work 9.01 or more hours. What is the median hours of work?

39. In this exercise we estimate the rate at which the total per- sonal income is rising in the Richmond-Petersburg, Virginia, metropolitan area. In 1999, the population of this area was 961,400, and the population was increasing at roughly 9200 people per year. The average annual income was $30,593 per capita, and this average was increasing at about $1400 per year (a little above the national average of about $1225 yearly). Use the Product Rule and these figures to estimate the rate at which total personal income was rising in the Richmond-Petersburg area in 1999. Explain the meaning of each term in the Product Rule.

Suppose that education is the only factor that affects productivity and that an additional year of education raises wages by 2%.   Suppose in 2011 gender wage gap was 13%, and the average man had 15 years of education while the average women had 14 years of schooling.  a) Using the wage gap decomposition technique, calculate how much of the 13% wage differential is due to discrimination? b) Now suppose in 2021 the gender wage gap is 10%, but the average woman’s education level is increased to 17 year and the average man’s education increases to16 years. (Assume that the return to education stays same at 2%), Was there a decrease or an increase in wage discrimination in the decade?  Why?

1. You have been hired as a consultant for the City of Los Angeles. City planners need to understand population data and use the data to predict the population in the future. Having a good estimate of the city's population helps the planners decide how much money will be needed for city maintenance and services, and helps local officials anticipate the needs for housing, school and other construction, and much more. Your work begins with finding the population of Los Angeles in the United States Census for 1920 to 2010. The U.S. Census Bureau data for the City of Los Angeles 1920-2010 appears in table below. Year Actual Population using Population using Quadratic Model Population using Exponential Model х, уears since Population Linear Model 1920 1920 576,673 10 1930 1,238,048 20 1940 1,504,277 30 1950 1,970,358 40 1960 2,479,015 50 1970 2,816,061 60 1980 2,966,850 70 1990 3,485,398 80 2000 3,694,820 90 2010 3,792,621 a. One way to model the population is with a linear function, y = mx…

Q35 In order to maximize profits, a firm needs to determine the quantity of each factor that it will employ, which is dictated by price as well as productivity of the factor. Assume farmer in the Ottawa area named Justin Trudeau has fixed amounts of land and capital finds that total product is 24 for the first worker hired, 32 when two workers are hired, 37 when three are hired, and 40 when four are hired. Justin Trudeau's product sells for $3 per unit, and the wage rate is $13 per worker. What is Justin Trudeau's profit-maximizing output? Multiple Choice   16.   40   37   20   32

Regression analysis and the correlation coefficient can both be used to analyze the relationship between two economic variables. What are the advantages of using regression analysis instead of looking at the correlation coefficient?

9) Since the Social Security system began in 1935, the number of individuals in the workforce per retiree (ratio of workers supporting those receiving retirement benefits) has A) stayed roughly the same. B) continually increased. C) continually decreased. D) risen and declined with different generations.

Suppose that 15 states decrease the length of the standard work week from 40 to 35 hours. You are interested in the effects of this change on worker productivity. What effects might you expect to see? How would you conduct a difference-in-difference analysis to estimate the impact? What assumption must hold for the difference-in-difference analysis to be valid?

Calculate Karl Pearson’s Coefficient of Correlation between age and percentage of regular players from the data given below: Age 20 21 22 23 24 25 No. of students 500 400 300 240 200 160 No. of regular players 400 300 180 96 60 24

Q33 In order to maximize profits, a firm needs to determine the quantity of each factor that it will employ, which is dictated by price as well as productivity of the factor. Assume farmer in the Ottawa area named Justin Trudeau has fixed amounts of land and capital and finds that total product is 24 for the first worker hired, 32 when two workers are hired, 37 when three are hired, and 40 when four are hired. Justin Trudeau product sells for $3 per unit, and the wage rate is $13 per worker. The marginal product of the second worker is Multiple Choice   32   14.   8   1   5

Question 12 The following income distribution data are for Lesotho: Quintile Lowest 10% Lowest 20% Second quintile Third quintile Fourth quintile Highest 20% Percent Share 2.2% 3.0% 7.2% 12.5% 21.0% 56.3% Explain how to find the Gini coefficient, graphically. (Hint: You might want to use labels on your graph). You should be able to draw a graph on your computer, save it as a graph, picture, or document, and upload that graph, picture, or document to your answer box. If you cannot do that, you can always draw a graph on paper, take a picture, and upload the picture to your answer box.

Government-imposed taxes cause reductions in the activity that is being taxed, which has important implications for revenue collections. To understand the effect of such a tax, consider the monthly market for cigarettes, which is shown on the following graph. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per pack) 10 9 8 6 2 1 0 0 # Supply Demand 10 20 30 40 50 60 70 80 90 100 QUANTITY (Packs) Graph Input Tool Market for Cigarettes 31- Quantity (Packs) Demand Price (Dollars per pack) (Dollars per pack) Suppose the government imposes a $2-per-pack tax on suppliers. At this tax amount, the equilibrium quantity of cigarettes is Tax 40 6.00 2.00 Supply Price (Dollars per pack) packs, and the government collects $ ? 4.00 in tax revenue.