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bekas [8.4K]
3 years ago
8

If the labor supply curve is very elastic, a tax on laborA. raises enough tax revenue to offset the loss in welfare.B. has a lar

ge deadweight loss.C. results in a large tax burden on the firms that hire labor.D. has a relatively small impact on the number of hours that workers choose to work.
Business
1 answer:
Burka [1]3 years ago
6 0

Answer: .B. has a large dead weight loss

Explanation:

 The labor market basically has two forces pulling against each other, we have firms who demand labor and we have workers who are Suppliers of labor. Firms will want to hire more labor at a lower wage price while more workers will want to work when the wage price is higher as the law of supply stipulates  

The law of supply states that more is supplied at a higher price, now using the same law on the supply of labor we conclude that more labor will be supplied at a higher Wage which represents Price. A Labor Market is equilibrium when Quantity Demanded Equals Quantity Supplied. Elasticity measures the sensitivity of Demand or Supply to Price Changes. The amount of Change in the Quantity supplied or demanded depends on how elastic the demand or supply is to wage Price changes

When Supply Curve is highly elastic means a small change in wage price will have a huge impact on the Total amount Labor supplied. When government imposes Tax on labor, The Wage price will decrease and workers will now earn a wage net of tax,

The Supply curve is highly elastic meaning a small decrease in wages caused by a tax imposed on labor  will only lead to a huge decrease in the quantity of labor supplied because more people will choose not work. The tax imposed on labor creates a huge dead weight loss in the labor market because the market is no longer in equilibrium. The Quantity of labor supplied is far less than the quantity of labor demanded.

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Carlos is the manager of an American company. He expects the value of the British pound to appreciate in the near future and so
Inga [223]

<u>Answer:</u> Speculation.

<u>Explanation:</u>

Carlos tries to make a profit through exchange rates. Carlos is a speculator who tries to make profit through market fluctuations. The strategy is a risky strategy as the speculators based on their knowledge about the market make decisions accordingly.

Carlos is planning to receive the appreciated value of British Pounds so that he receives the same amount as mentioned in the contract but makes profit out of exchange rates and books FX profits in his books of accounts.

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3 years ago
Economists use the distinction between private and public goods to determine __________
Butoxors [25]

Economists use the distinction between private and public goods to determine what projects and activities should be undertaken by the government.

In the economy, there are different types of goods among which, public goods are goods which are produced by the government or by nature for the welfare of the people without any cost. On the other hand, private goods are the ones manufactured and sold by private companies to earn a profit.

Economists use this distinction between different goods to allow the government to decide which goods are considered public goods so that the government can channel the funds in order to provide the public goods to the economy.

Hence, both public and private goods have their own importance in the economy.

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8 0
2 years ago
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ad-work [718]

Answer: c. Do not include the normal costs of commuting

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3 0
3 years ago
When the average unit cost of a good or service decreases as the capacity and/or volume of throughput increases, it is known as
Sergeu [11.5K]
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A customer sells 1 ABC Corporation put for 2 on February 22, 2019, with a strike price of 50 and an expiration date of March 16,
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A Put amount gives the holder the right to sell underlying assets. As the Put was exercised, the customer would have to buy the underlying stock and the price they will pay for it is the strike price of the Put less the cost of the Put.

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