If the tax elasticity of labor supply is 0.16, by what percentage will the quantity of labor supplied increase in response to Instructions: In part b, enter your response as a percentage rounded to one decimal place. a. A $500 per person income tax rebate check? A 4.5% increase A 2% increase A 1.5% increase No increase b. A reduction of 5 percent in marginal tax rates?
Answers
Answer:
If every work receives a tax rebate of $500 per person income tax the quantity of labor supplied will not increase because the rebate is a temporary
A 4.5% increase in marginal tax = 0.16 * 4.5 = 0.72 = 0.7 ( decrease in quantity of labor )
A 2% increase in marginal tax
= 0.16 * 2 = 0.32 = 0.3 ( decrease in quantity of labor )
A 15% increase
= 0.16 * 15 = 2.4 ( decrease in quantity of labor )
No increase = 0.16 = 0.16 ( quantity of labor supplied remains unchanged )
A reduction of 5%
= 0.16 * 5 = 0.8 ( increase in quantity of labor )
Explanation:
Tax elasticity of labor supply = 0.16
What percentage will the quantity of labor supplied increase in response to
A) $500 per person income tax rebate
percentage change in quantity supplied = (tax elasticity of supply) * (percentage change in tax rate ) If every work receives a tax rebate of $500 per person income tax the quantity of labor supplied will not increase because the rebate is a temporary measure and does not have an effect the tax rate in the long run.
B) A 4.5% increase in marginal tax
change in the quantity of labor = tax elasticity * increase marginal tax
0.16 * 4.5 = 0.72 = 0.7 ( decrease in quantity of labor )
A 2% increase in marginal tax
= 0.16 * 2 = 0.32 = 0.3 ( decrease in quantity of labor )
A 15% increase
= 0.16 * 15 = 2.4 ( decrease in quantity of labor )
No increase = 0.16 = 0.16 ( quantity of labor supplied remains unchanged )
A reduction of 5%
= 0.16 * 5 = 0.8 ( increase in quantity of labor )
Related Questions
The Work-in-Process inventory account of a manufacturing firm shows a balance of $4,090 at the end of an accounting period. The job cost sheets of two uncompleted jobs show charges of $570 and $370 for materials, and charges of $600 and $800 for direct labor. From this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct labor costs, of: Multiple Choice 43%.
Hardy Company has current assets of $95,000, current liabilities of $100,000, long-term assets of $180,000 and long-term liabilities of $80,000. Hardy Company's working capital and its current ratio are: A. -$5,000 and .95:1. B. $5,000 and .95:1. C. -$5,000 and 1.95:1. D. $85,000 and .95:1.
You are a U.S. investor who purchased British securities for 2,340 pounds one year ago when the British pound cost $1.52. No dividends were paid on the British securities in the past year. Your total return based on U.S. dollars was __________ if the value of the securities is now 2,440 pounds and the pound is worth $1.61.
Suppose you buy lunch for $15.40 that includes a 8% sales tax. How much did the restaurant charge you for the lunch (excluding any tax) and how much does the restaurant owe for sales tax?a. $16.10 for lunch and $1.19 for sales tax.b. $14.81 for lunch and $1.29 for sales tax.c. $16.10 for lunch and $1.29 for sales tax.d. $14.91 for lunch and $1.19 for sales tax.
Answers
Answer:
The correct answer is letter "B": flextime plan.
Explanation:
A flextime plan consists in linking production hours with the availability of the individuals involved in a project or work. The different timeframes of availability do not affect the operations' peak hours either the total amount of hours those individuals must work in day or week.
The flextime plan aims to provide individuals the flexibility to choose the working schedule that matches better with their personal activities which may increase their commitment to the firm and productivity.
a) slow; fast
b) slow; standard
c) standard; slow
d) standard; fast
Answers
Answer:
d) standard; fast
Explanation:
Standard cycle market is defined as a market where a company's products (competitive advantage) are shielded from imitation. This is seen in the given scenario as multi-year contracts with artists and sold copyright-protected music through established distribution channels.
Fast cycle market on the other hand occurs when the competitive advantage of a company is not shielded from imitation. The imitation occurs regularly. In the given scenario this is exemplified by a shift to the digital format and the rise of Internet technology have resulted in the sharing of music over peer-to-peer networks, a practice the industry calls "piracy
Answers
The current value of Jim's bonds are $8,749.57.
What is the value of Jim's bonds?
The value of the bond can be determined by calculating the present value of the cash flows of the bonds. The present value is the sum of discounted cash flows.
Value of the bond = present value of coupon payments + present value of the face value of the bond at maturity.
Present value of the face value of the bond at maturity = $10,000 / (1 + 0.0175^120) = $1247.01
Present value of coupon payments = future value / (1 + 0.07^30)
Future value = amount x annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
Where:
- Amount = 1.5% x 10,000 = $150
- r = interest rate = 7%/4
n = number of years = 30 x 4 = 120
$150 x [({1.0175^120) - 1} / 0.0175] = $60,164.43
Present value = $60,164.43 / (1.0175^120) = $7,502.56
Value of the bond = $7,502.56 + $1247.01 =$8,749.57
To learn more about present value, please check: brainly.com/question/26537392
Answer:
current value is $8749.57
Explanation:
given data
face value = $10,000
maturity period = 30 = 30 × 4 = 120
interest = 1.5% every 3 month
solution
we will apply here bond price formula that is
bond price = coupon × ............................1
here r is rate and n is no of period and
so rate = = 1.75% = 0.0175
and coupon is $150
put here value
bond price = $150 ×
bond price = 8749.57
so current value is $8749.57
Respond to two other student's posts.
Use actual numbers in your memo. For example, if you need to borrow money to pay a $10,000 bill that offers terms of 2/10, n/30 and the loan's interest rate is 6%.
Answers
Answer:
Memo
To: The Finance Manager
From: The Payables Accountant
Subject: Bank Loan to Pay Suppliers
Date: October 5, 2020
The above subject on our previous discussion refers.
This memo clarifies the advantage of borrowing from our bank the sum of $100,000 in order to offset the account of our supplier who has offered us the trade terms of 2/10, n/30.
Recall that the bank loan's interest rate is 6% per annum. If we borrow within the month and repay 30 days after, the interest cost will be $500 ($100,000 * 6%/12).
You can compare this to the discount we shall receive from the supplier totaling $2,000 ($100,000 * 2%). We can even extend the bank loan to 2 months, thereby paying a total interest cost of $1,000 ($500 * 2).
The implication is that we shall be making some gains by taking advantage of the cash discount. May you approve the loan based on this clarifications.
Regards,
Tony Ohagwam
Explanation:
This memorandum attempts to justify the request for a bank loan in order to settle the bill of one of our company's suppliers. It demonstrates the huge financial benefits that are implicit in accepting cash discounts from suppliers.
a. Prepare the entry to correct the prior year's depreciation, if necessary.
b. Prepare the entry to record depreciation for 2021.
Answers
Answer:
a. Prepare the entry to correct the prior year's depreciation, if necessary.
- When an asset's useful life is extended, the extension is done prospectively, not retrospectively. This means that past depreciation does not need to be adjusted.
b. Prepare the entry to record depreciation for 2021.
- Dr Depreciation expense 4,510
- Cr Accumulated depreciation - machinery 4,510
Explanation:
purchase cost of machinery $66,000
estimated useful life 8 years
estimated salvage value $4,400
depreciation has been recorded using the previous basis during the first 5 years, but now the estimated useful life was extended to 10 years and the salvage value = $4,950
depreciation expense per year (during first 5 years) = ($66,000 - $4,400) / 8 = $7,700 per year
accumulated depreciation up to year 5 = $7,700 x 5 = $38,500
the carrying value of the asset on January 1, 2021 = $66,000 - $38,500 = $27,500
the new depreciation expense per year = ($27,500 - $4,950) / 5 = $4,510
depreciation expense for 2021:
Dr Depreciation expense 4,510
Cr Accumulated depreciation - machinery 4,510
Answers
Answer:
new wants continue to develop and willingness to meet them is limited.
Explanation:
In economics, scarcity refers to not being able to satisfy the total demand for goods and services. Everything is scarce, specially time (also capital, labor, technology), and economic agents must allocate resources that yield the highest benefits to them. The demand for goods and services is virtually unlimited, but if you can earn a higher profit from selling certain good X than selling good Y, you will sell good X and the consumers' demand for good Y will be unsatisfied.
Final answer:
Scarcity exists because human wants and needs are infinite, but the resources to fulfill these are finite. Our society constantly desires new and more goods, but our ability to produce these items is limited. This results in constant decision-making about what to produce, how to make it, and who will receive it.
Explanation:
Scarcity exists due to the second multiple choice option - new wants continue to develop, and the willingness or ability to meet them is limited. This is a foundational concept in economics explained by the fact that human wants and needs are infinite, but resources to fulfill these wants and needs are finite. This disparity between nearly limitless wants and the limited production capability results in scarcity.
Even as societal productivity improves, and we produce more goods and services, we continually desire more and newer products. Additionally, resources such as land, labor, and capital are not infinite. We always have to make decisions about what to produce, how to produce it, and who will get what is produced. Those are the three central coordination problems.
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