Analyse the effects of a payroll tax given per unit of labour. Specifically, analyse its impact...

Analyse the effects of a payroll tax given per unit of labour. Specifically, analyse its impact on total employment, the real wage and total wage earnings.

Expert Solution

Rahul Sunny answered 8 months ago

a) Assume a tax of 2 $ per unit is imposed on buyers. Show the impact...

a) Assume a tax of 2 $ per unit is imposed on buyers. Show the impact of the tax on buyers, sellers, and economic efficiency. Carefully label your graph. Other things being equal, will a tax on sellers produce a better outcome? Will it change the burden of the tax? Explain. b) Accounting professors earn more than Literature professors at most universities. What might be the reasons (use the supply and demand model)?

Compute the cost per equivalent unit for materials, for labour, for overhead, and in total.

Ainsley Industries uses the weighted-average method in its process costing system. Data for the Assembly Department for May appear below: Materials Labour Overhead Work in process, May 1 $28,000 $22,000 $117,500 Cost added during May $52,000 $18,500 $63,600 Equivalent units of production 1,500 800 1,200 Required Compute the cost per equivalent unit for materials, for labour, for overhead, and in total.

The standard cost for material and labour in a manufacturing process is provided per unit as:...

The standard cost for material and labour in a manufacturing process is provided per unit as: Material cost 5kgs shs.50 Labour cost 20hours shs.10 Material consumed in producing 500 units was Shs.25,650 against 2,700kgs of material. Wages paid was Sh6,050 for 11,600 hours, including 20 hours which was idle time due to machine breakdown. Required: Material cost variance Material price variance Material usage variance Labour cost variance Labour rate variance

If the government imposes unit sales tax (i.e., $ tax per unit sold) on a product,...

If the government imposes unit sales tax (i.e., $ tax per unit sold) on a product, which one, demand, or supply will shift? Increase or decrease? Will the new tax cause "disequilibrium"? Please state clearly about the shift (leftward or rightward) and the equilibrium price and quantity change. No graph is required.

Using a suitable economic growth model, analyse how a labour surplus economy that starts with its...

Using a suitable economic growth model, analyse how a labour surplus economy that starts with its entire population engaged in agriculture, can shift a large part of that population to the industry or other employment with no reduction in agricultural output. State all assumptions involved in explaining the model and justify your answer with an appropriately labelled diagram.

Analyse the changes in oil prices in the last one year and its impact on the...

Analyse the changes in oil prices in the last one year and its impact on the Balance of Payments of the india. impact on cement indutries

(a) Using an appropriate diagram Illustrate and explain the welfare effects of a unit tax on...

(a) Using an appropriate diagram Illustrate and explain the welfare effects of a unit tax on a commodity within the framework of indifference curves analysis (b) Illustrate on the same diagram, the welfare effects of a lump-sum tax that generates the same amount of tax revenue as in (a). (1.5 marks) (c). Are the welfare effects the same? Is any of the taxes efficient? Explain why or why not. (1.5 marks)

4. Suppose that, with a given unit of labour, India can produce 40 basketball hoops or...

4. Suppose that, with a given unit of labour, India can produce 40 basketball hoops or 60 basketballs and Nepal can produce 10 basketball hoops or 40 basketballs. This scenario is illustrated below: Output Hoops (H) Balls (B) India 40 60 Nepal 10 40 c. If Nepal wants to consume equal amounts of both goods (as many units of hoops as balls), how much of each good will be produced and consumed if there is no trade between the two...

Suppose there is a $1.50 per unit tax levied on sellers

Consider the market below a. Suppose there is a $1.50 per unit tax levied on sellers. Draw the after-tax supply curve. Instructions: Use the tool provided (S2) to draw the after-tax supply curve. Be sure your endpoints are at Q = 0 and Q = 100 b. Plot the after-tax price paid by consumers and the after-tax price paid by sellers. Instructions: Use the tools provided to draw the after-tax price paid by consumers (After-tax Pc) and the after-tax price paid by...

Is it likely that a $2 per unit tax on the suppliers of a product will...

Is it likely that a $2 per unit tax on the suppliers of a product will increase the price by $2? Why or why not? Can you draw a diagram to support your answer?

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