Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

Given below is the graph of a labour market in equilibrium, with market clearing values of wages and hours of employment being W1 and E1 respectively.

problem1. The Federal government has decided to directly offer a new advantage to citizens but to fund this new program, they have decided to enforce an excise tax on employers of $t per hour of hired work.  On the graph, clearly demonstrate how this tax on employers will change the market clearing values of W and E.  Also, point out on your graph what the new hourly cost per worker that the firm pays.

problem2. Assume instead of the circumstances in part (a), the government mandates that the firms directly offer the new advantage.  Suppose that it will still cost firms $t per hour of employment to offer the benefit.  Suppose further that the workers will not value the benefit at all.  On the graph, point out how this mandate fluctuates the market clearing values of W and E.  After the employer mandate, what is the new hourly cost per worker that the firm pays?

problem3. Given your answers to parts (a) and (b), what is the preferred manner to offer the new benefits, through the government of though the employer mandate?  Elucidate your answer.

problem4. Continuing with the situation described in part (b), assume that the mandate still costs the firms $t per hour but now, employees value the benefit at $t/hour.  On the graph, point out how this mandate changes the market clearing values of W and E.  After the employer mandate, what is the new hourly cost per worker that the firm pays?  After the mandate, what do workers value the last hour of work?

problem5. Given your answers to (a) and (d), what is the preferred manner to deliver this benefit: through the government or through an employer mandate?  Elucidate your answer.

68_labour graph.jpg

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M91522

Have any Question? 


Related Questions in Macroeconomics

A college student has two options for meals eating at the

A college student has two options for meals : eating at the dining hall for $6 per meal, or eating a Cup O'soup for $1.50 per meal. His weekly food budget is $60. Draw the budget constraint showing the trade-off between ...

For this assignment student are to choose a chapter from

For this assignment student are to choose a chapter from the textbook and interpret, and explain the main concept introduced in the chapter. The course paper must include some current event to support the theory introduc ...

Economicsentering a merger and organizational form please

Economics Entering a Merger and Organizational Form" Please respond to the following: • From the scenario for Katrina's Candies, examine the major implications for firms entering into a merger. Explain the criteria the U ...

Economic essaylate papers will get a penalty of 2pts per

ECONOMIC ESSAY Late papers will get a penalty of 2pts per day During the last part of the course, we have read two chapters from the book titled: Why nations fail. On Chapter 2 - Theories that don't work- the authors pre ...

Explain why 76 years ago the rowell-sirois commission

Explain why, 76 years ago, the Rowell-Sirois Commission argued that: "The quality of education and welfare services is no longer a matter of purely provincial and local concern. In Canada today, freedom of movement and e ...

How would the assumption of perfect information in the

How would the assumption of perfect information in the theory of perfect competition render advertising utterly ineffective?

In order to financially stimulate the nation the federal

In order to financially stimulate the nation, the Federal government injected $800 billion dollars into the economy. However, the results were less than spectacular. One reason could have been a failure to understand the ...

The baypoint group tbg needs your help with a presentation

The Baypoint Group (TBG) needs your help with a presentation for Academic Computing Services (ACS), a nationwide organization that assists colleges and universities with technology issues. ACS needs more information abou ...

Essaylength 1100 wordsimagine you own a company and could

Essay Length: 1100 words. Imagine you own a company and could choose the type of economic system your country uses. Create a 1100-word comparison paper including: • Compare the different economic systems. • Explain which ...

Assignment multiyear plans and analysisfor assignments you

Assignment: Multiyear Plans and Analysis For Assignments you are the new budgeting and finance administrator for your local government agency. Your first responsibility is to become familiar with the agency, the budget, ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro