This website uses cookies to ensure you have the best experience.

# Eco 370 Hw Solution Essay

958 words - 4 pages

Answers to Homework 2 (30) 1. Continuing from the Question 4 on Homework 1, suppose the following Earned Income Tax Credit (EITC) scheme is put in place. For those whose earned income (i.e. labor income) is less than \$100 per week the government gives 20 cents on every dollar earned. For those who earn more than \$100 the government gives them \$80 per week. Based on the answers to question 4(d) of the first homework, how does this affect the labor supply and earnings of Shelly? Explain your answers. From homework 1, Shelly will work 32 hours. We expect her to be on the flat part of the EITC schedule. This is equivalent to an increase in her non-labor income, V, of \$100 per week. So tangency ...view middle of the document...

Thus, someone who had not been working faces a wage that is 40 percent higher than it otherwise was. This increase may be enough to encourage the person to start working. For example, if a worker’s reservation wage is \$10.00 per hour but the only job she can find pays \$8.00 per hour, she will not work. Under the earned income tax credit, however, the worker views this same job as paying \$11.20 per hour, which exceeds her reservation wage. Furthermore, the EITC cannot encourage a worker to exit the labor force, as the benefits of the EITC are received only by workers.

(50) 3. Trans-Fat Corp. is setting up a small Twonky factory in Albany. Table 1 shows the hourly output in Twonkies associated with each level of employment. Table 1 Workers Output 1 5 2 11 3 18 4 26 5 35 6 43 7 50 8 56 9 61 10 65 11 68 12 70

(a) Tabulate and plot the marginal productivity and average productivity of labor curves for the factory. Worker 0 1 2 3 4 5 6 7 8 9 10 11 12 Output Marginal Product 5 6 7 8 9 8 7 6 5 4 3 2 Average Product 5.00 5.50 6.00 6.50 7.00 7.17 7.14 7.00 6.78 6.50 6.18 5.83

5 11 18 26 35 43 50 56 61 65 68 70

(b) If a Twonky retails for \$2 each. How many workers would the firm hire if the wage was \$12/hr? wage rate = price * marginal product of labor \$12 = \$2 * MPe MPe = 6 Then, the firm will hire 8 workers.

(c) Plot out the short run labor demand curve for the factory for wages between \$4 and \$20/hr.

For the firm’s hiring...

## Other Essays Like Eco 370 Hw Solution

### The French And Indian War: The "Real" First World War

1955 words - 8 pages The Seven Years War, or more commonly referred to as “The French and Indian War”, has been called the true First World War. In this book The French and Indian War: Deciding the Fate of North America, the author and historian Walter R. Borneman paints a detailed and elaborate picture that justifies the claim of it being the first true war of global proportions. If ever there truly was a climax to the never ending feud of the European powers

### Is The Use Of Animals In Medical Research A Necessary Measure?

1513 words - 7 pages Throughout history, animals have been used in experiments to test product safety and obtain medical knowledge that benefits both humans and animals alike. Every year there are numerous medical breakthroughs, such as medications and surgical instruments, which are tested on animals to insure their safety before they are deemed acceptable for human use. Even though the results of the experiments saved millions of human lives, they are also

### Education And The Evolving Job Market

2363 words - 10 pages The lives of students today are changing. They are preparing for lives and jobs that have never before existed. If teachers hope to have a significant and worthwhile impact on these quickly changing lives, they must change the way they think, prepare, and instruct our future generations. Children cannot afford to have teachers who remain stagnant in their methods and ideals. Students crave instructors that are willing to allow them to tap

### Young And Relentless

1737 words - 7 pages financial burdens to their children. In addition, among the growing number of HIV diagnoses in the U.S., young teens have joined the list of groups most vulnerable to infection. In pushing condoms as a solution, we have overlooked some of the most serious consequences of early sexual activity, and effectively hidden others” (Witherbee 6). When parents give an effort to talk to teens about sex, the sexual activity can be lowered and decrease a

### The Natural Law Theory

1231 words - 5 pages Obeying by the natural law theory is the only true and moral way to live life; especially a life lived in God’s image. God’s presence is a guiding factor to obtaining a moral and virtuous life, which can only be obtained by following the natural law theory. God created a set of laws as a supreme guide for humans to live life, like any law these laws were created to ensure wellbeing for everyone. The laws he created are the civil law, the natural

### Resolved: Presidential Signing Statements Threaten To Undermine The Rule Of Law And The Separation Of Powers

1811 words - 8 pages The subject of signing statements has created much debate among the houses of Congress, government officials, and the public alike. These signing statements fall under the categories of constitutional and legislative history signing statements. Constitutional signing statements are those in which the president deems certain provisions of the legislation as unconstitutional, therefore they should not be enforced (Bradley & Posner, 2006

### Oppressive Systems Of Government In Egypt And Animal Farm

1529 words - 7 pages As in Egypt, Orwell demonstrates through his allegorical novel “Animal Farm” that leaders are able to establish and maintain power over a people, and in turn create an oppressive and corrupt government system. Orwell shows the significant difference in the education and levels of knowledge in the animals, and how the government takes advantage of this difference. The split between the levels of intelligence is portrayed in the first chapter when

### The Pathway To Psychosis

1415 words - 6 pages “How all occasions do inform against me” is a line from act IIII, scene IIII of William Shakespeare’s Hamlet. This line, spoken by Hamlet, expresses his emotional state as he is currently overwhelmed by the death of his father, the king of Denmark, and the situation surrounding it. After Hamlet learns of his father’s death he finds out that his mother has married Claudius, Hamlet’s uncle. On top of all of that, Hamlet soon after

### Rated “M” For “More Censorship Not Needed”

1241 words - 5 pages Since the moment video games became a commercial success there have been people who have pushed for unfair amounts of censorship to be placed upon the content of the games and its availability to children. These groups push for increased regulations on content but there is already an appointed group to handle this issue, the ESRB. Even though there has been an increase in mature content in the video game industry, increased censorship is not

### Four Components Of A Legally Astute Social Media Marketing Manager

1914 words - 8 pages increase the value of the firm. Facebook can be used to enter into formal contracts, this will protect the firm against people trying to take advantage of what is seen as a weakness. Formal contracts can protect a firm against lawsuits (Bagley, 2008).   List and Analyze Methods of Alternative Dispute Resolution There are several methods available to resolve disputes. This is a way for disagreeing parties to come to a solution to a problem

### Obama's Values

1217 words - 5 pages decides that what he needs is to persist through it and keep encouraging the people to value education because it’s very essential. Obama states that “the more [he] learned about the system, the more convinced [he] became that school reform was the only possible solution for the plight of the young men [he] saw in the street”(Obama 256). Over the years working as a community organizer he learned that “education was their last hope” for these young

## Related Papers

### The Separation Of Capital Ownership And Control

1577 words - 7 pages The argument of whether the separation of capital ownership and control is an efficient form of organization has constantly been a controversial issue. The criticism whether the controllers’ act is in the best interest of the owners’ wills never end as long as hired managers operate management. As the number of public companies has been increasing over the course of this century, meanwhile the American style of contact based corporation has

### The Versatility And Flexibility Of Oled's

1014 words - 5 pages In April 1, 2002, organic light emitting diodes gain rise in the scientific community with their published, more practical form at Ames Laboratory. “Scientists at the U.S. Department of Energy's Ames Laboratory, in collaboration with scientists at the University of Michigan, Ann Arbor, have developed and demonstrated a novel, fluorescence-based chemical sensor that is more compact, versatile and less expensive than existing technology of its

### Comparing The Moral Virtues Of Antony And Julian The Apostate

1103 words - 5 pages Roman emperor Julian the Apostate and Christian leader Antony both exhibited many qualities of character during their existence. Both of them led very distinctive lives although shared several ethical values. Book 25 of “The Later Roman Empire” and the book “Early Christian Lives” show concrete evidence of this. In the following essay, I will argue how both leaders’ lives were devoted to their religious beliefs and their mutual cardinal virtues

### Living In A Cashless Society Essay

1637 words - 7 pages Money in a traditional sense no longer exists. Money is becoming much of a concept than a physical material, and most ordinary bitter have not see the reality of the switch. People today are using credit and debit cards on a regular basis and in everyday situations such as meal purchased at fast food, highway tolls, clothing, groceries, gas stations, etc. all of these means of systems could be regarded as a cashless society or world. The question