LABOR ECONOMICS
LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
Question
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Chapter 4, Problem 15P

a)

To determine

The effect of the elimination of payroll taxes on worker wages.

b)

To determine

The effect of the elimination of payroll taxes on employment costs.

c)

To determine

The effect of the elimination of payroll taxes on producer and worker surplus.

d)

To determine

The reason why workers disagree with the elimination of payroll taxes.

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If the tax elasticity of labor supply is 0.24, by what percentage will the quantity of labor supplied increase in response to   a. a $500 per person income tax rebate?multiple choice A 4.8 percent increase A 1.2 percent increase No increase A 2.4 percent increase b. a 9 percent reduction in marginal tax rates?         %
(1) If the demand for product Y increases significantly, then  A- the demand for the labor used to make Y decreases.  B-the quantity of labor supplied to produce Y will decrease.   C-the supply of labor to produce Y will increase.  D-only the quantity demanded of labor increases E-the demand for the labor used to make Y increases (2)If the wage in a perfectly competitive labor market is $15 and the marginal product of the last worker employed is 3 units, what must be the market price for the good being produced? Assume a perfectly competitive output market. A- $5.   B-$12.  C-$15.  D-$18.  E-$45
Explain the relationship between the own-wage elasticity of labor demand and output demand elasticity. labour costs as a share of total costs of production.
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