Econ 3100 Study guides, Class notes & Summaries

How are payroll taxes assessed in the US, given that labor supply is relatively more inelastic than demand? What's the incidence of the tax? Can the burden be shifted to the firms? Correct Answer-As labor supply is relatively more inelastic than labor demand, workers will bear a greater percentage of payroll taxes than employers regardless of how the law stipulates the amount be split. Most estimates suggest that workers in the United States bear about 80 to 85 percent of payroll taxes. Again, ...

The demand curve shows... Correct Answer-the quantities that buyers are willing to purchase at different prices. A supply schedule shows Correct Answer-the quantities of a good that producers are willing to provide at different prices A market is said to be in equilibrium when ... Correct Answer-the quantity demanded equals the quantity supplied. Suppose we observe that as the price of lettuce increases from $1 to $2 per head, consumers buy only half the number of heads of lettuce. This...

ECON 3100 Ch. 6 Study Guide Questions with Complete Solutions

Quiz 7 ECON 3100 Questions with Complete Solutions

Quiz 7 ECON 3100 Questions with Complete Solution1

Quiz 11 ECON 3100 Questions with Complete Solutions

One year investor Correct Answer-P0=(DIV1+P1)/(1+RE) If the current stock price is less than this amount, investors will rush in and buy it, driving up the stock price If the stock price exceeds this amount, investors will sell is, causing the stock price to fall Stock prices and returns Suppose you expect Loblaw Companies Ltd. stock to pay dividends of $0.56 per share in the coming year and to trade for $45.50 per share at the end of the year. If investments with equivalent risk to ...

To pay piece rates in order to elicit effort, it must be the case that Correct Answer-the firm can monitor individual worker output. Suppose a firm overpays its workers at the start of the job, and then the firm slowly lowers wages over time until eventually the firm pays the workers considerably less than the worker's marginal product of labor. What prevents this "reverse of a delayed-compensation scheme" from being implemented? Correct Answer-Workers would leave the job as soon as the fi...

ECON:3100 Assignment 10 Questions with Complete Solutions

In 2017, approximately what percent of adults in the United States had not graduated from high school? Correct Answer-8%. In 2017, approximately what percent of adults in the United States had received more education than a high school degree? Correct Answer-67%. Which group tends to have the highest unemployment rate in the United States? Correct Answer-Blacks. Labor force participation rates tend to: Correct Answer-Increase with education for both men and women. Present value calcu...