Employers in a city must pay a specific tax of $t per hour worked by their employees while employers in the suburbs of the city do not have an employment tax
What does a general equilibrium approach predict regarding the wages and employment of both the city and suburban workers if the city decides to substantially reduce their employment tax rate? A) Wages will increase in the city, but not in the suburbs, and employment will increase in both.
B) Wages will increase in both the city and the suburbs, but employment will fall in both.
C) Wages will increase in both the city and suburbs, employment will increase in the city, but decrease in the suburbs.
D) Wages will increase in both the city and the suburbs, employment will decrease in the city, but increase in the suburbs.
C
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Refer to Table 3-3. The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi) and the rest of the market. If the price of Kona coffee rises from $4 to $5, the market quantity demanded would
A) decrease by 115 lbs. B) increase by 35 lbs. C) decrease by 35 lbs. D) increase by 115 lbs.
Injections include saving and taxes
a. True b. False Indicate whether the statement is true or false
Which of the following sequences would cause the labor shortage shown in this graph?
a. WMIN goes higher than WE, thereby decreasing QD and increasing QS.
b. WMIN goes lower than WE, thereby decreasing QD and increasing QS.
c. WMIN goes higher than WE, thereby increasing QD and decreasing QS.
d. WMIN goes lower than WE, thereby increasing QD and decreasing QS.
Traditionally, the major objection to flexible rates was that they ______.
a. introduce considerable uncertainty into international trade b. were controlled solely by the U.S. government c. require special financial borrowings or reserve movements d. can result in currency shortages