« previous next »

Author Question: Eliminating structural unemployment would be good for the economy. Indicate whether the statement ... (Read 104 times)

schs14

  • Hero Member
  • *****
  • Posts: 569
on: Jun 29, 2018
Eliminating structural unemployment would be good for the economy.
 
  Indicate whether the statement is true or false

Question 2

Suppose that Hawaii legalizes casino gambling. By imposing a tax on casino revenues, the state government is able to eliminate the state income tax on wages. What is likely to be the effect on the labor supply curve in Hawaii?
 
  What will be an ideal response?
InMicro ¦ Hubbard, O'Brien ¦ 1st Edition
Buy Test-Bank


GCabra

  • Sr. Member
  • ****
  • Posts: 331
Reply #1 on: Jun 29, 2018
Answer to Question 1

FALSE

Answer to Question 2

Eliminating the income tax on wages increases the opportunity cost of leisure because the after-tax wage is now higher than it was. Workers will also earn more income for any given number of hours worked. Whether workers will end up supplying more hours at each wage rate depends on whether the substitution effect of this increase in the after-tax wage is greater than the income effect.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

Everyone has one nostril that is larger than the other.

“Bad,” “neutral,” and “good” mutations. “Bad,” “neutral,” and “good” mutations.
Take a good look at this woman Take a good look at this woman
The Importance in the World Fossil Fuel Economy The Importance in the World Fossil Fuel Economy
Good ethical judgment comes from both learning and experience. Good ethical judgment comes from both learning and experience.
The striking structural similarity between the translocation factor EF-G (right) and the ternary The striking structural similarity between the translocation factor EF-G (right) and the ternary
The structural genes of the lac operon are transcribed into a single polycistronic mRNA The structural genes of the lac operon are transcribed into a single polycistronic mRNA
Video: Methods of carbon dioxide transport - carbaminohemoglobin and bicarbonate ions

For a complete list of videos, visit our video library