Answer:
Substitution Effect outweighs Income Effect ; Labour Supply Curve between wages will be upward sloping. OR :-
Income Effect outweighs Substitution Effect ; Labour Supply Curve between wages will be backward bending
Explanation:
Relationship between wage rate & labour supply can be explained by two effects :
- Substitution Effect : Higher wage means more opportunity cost of leisure, so labourer would substitute leisure by working hours. This would imply increased labour supply.
- Income Effect : Higher wage means more income. At higher income, consumer demands more of all goods, including leisure. So that would imply labourer preferring more leisure, decreased labour supply.
Wage rate change from $20 to $25 is a case of wage rate increase
If substitution effect > income effect, labour supply would increase as a result of wage rise ( from $20 to $25). So, the labour supply curve would be upward sloping
If income effect > substitution effect, labour supply would decrease as a result of wage rise ( from $20 to $25). So, the labour supply curve would be backward bending
Original price = $500
Assume that the tax rate is 8%
Cost of the TV plus tax = 500*1.08 = $540
Worth of the 25% coupon = 0.25*540 = $135
Reduced price = 540 - 135 = $405
The cost of the TV with a coupon for 25% off excluding tax is $405.
Answer: $405
Answer:
thank you !
Explanation:
i might need to use thins soon haha
thanks,
~mina
Answer:B. Opponents of active stabilization policy believe that significant time lag in both fiscal and monetary policy often excercebate economic fluctuations.
C. Advocate of active stabilization policy believe that the government can adjust monetary and fiscal policy to counter waves of excessive optimism and pessimism among consumers and business.
Examples of automatic stabilizer
A. Corporate income taxes
B. Personal income taxes
Explanation:
Stabilization policy helps to stabilize the economy during expansionary or deficit period however a lag in the implementation will surely affect getting the right outputs from the implementation.
The economy has inbuilt stabilizer s that tend to correct excessiveness in economy such as the personal and corporate tax . The federal fund rate will be adjusted as the need be to stabilizer the economy even though it can be used as a stabilizer but it's not an automatic stabilizer.
It is called value factor. There are two kinds of value factor one is present value factor and second is future value factor. The business or anything in the business has their value on their own. The future value factor is used to calculate the future value of the amount per dollar of its present value. It is the amount greater than a dollar and you can see this on the table when you calculate the future value or FV. Present Value factor is based on the time and money when you borrow or it is the debt that can grow in the span of time.
