A,
B, C, D. An employer is better off by hiring workers who are
dedicated to their employer in the long run. Separately answering
as parts A, B, C and D, give and briefly explain four different
methods that employers use to employ workers who will be committed
to their employer.
A senator wants to raise tax revenue and make the workers better
off. A staff member proposes raising the payroll tax paid by firms
and using part of the extra revenue to reduce the payroll tax paid
by workers. Would this accomplish the senator’s goal?
The Ministry of Labour in Cambonesia wants to make workers
better-off without incurring additional expenditure by the
government. To this end, the Minister proposes to increase the wage
tax paid by employers (or, firms) in order to finance a wage
subsidy to workers. Would this policy achieve the Ministry’s
objective? Discuss your analysis and illustrate with an appropriate
diagram.
(Hint: It is not necessary to discuss welfare implications
involving consumer surplus or producer surplus.)
1. What are two economic arguments AGAINST legal rent controls
to keep rents below the equilibrium amount?2. Consider the following scenario: In many states and
municipalities, the minimum wage has increased in 2018. According
to economic theory, some potential workers will NOT be hired at the
higher wage, and some others may be laid off by being replaced by
machines. Those employee who continue working at the higher minimum
wage will earn more and have more income, but those who...
Describe one situation in which the government would be better
off imposing quantity restrictions than setting a tax and explain
why quantity restrictions are better in that case (200 words
max).