Microeconomics Answers

Suppose Florence has been offered a new assignment at work which comes with a $400 increase in her weekly wage. The catch is that the assignment would require her to work a bit longer so that she would need to pay for extended care for her child in the amount of $300 per week.

Further, suppose that Florence's federal marginal tax rate is 22%. She lives in Florida so she does not have to pay any state income tax. But she would also need to pay 6.2% Social Security tax and 1.45% Medicare tax on those additional earnings.

Use at least 3 decimal points in your answer and all intermediate calculations.

Given this information:

Florence's overall marginal tax rate (the sum of the above tax rates) is:___

If she accepts this new assignment she would have to pay: ___ in taxes on her additional weekly earnings.
Then her take-home after-tax additional weakly earnings would be:____.

From a purely financial standpoint, should she accept the new work assignment? Yes or No?

In the winter, which is the peak season for winter coats, the price of winter coats is typically higher than it is in the summer. In the case of strawberries, however, the reverse is true: The price of strawberries is lower in the peak season than it is in the winter season.

Provide THREE reasons to explain this seeming contradiction.

Explain why the existence of negative externalities and public good causes market failure and use an appropriate example.

Provide a good explanation price mechanism and its role in market action by allocating scarce resources among competing needs in a free market and provide a real-world example.

Does the principle of “increasing opportunity cost” hold
in this nation? Explain briefly. (Hint: What happens to
the opportunity cost of carpet—measured in number of
looms—as carpet production increases?)

explain how the u-shaped average coast curve can be used by a firm in decision making

Is the neoclassical, free-market theory necessarily incompatible with dependence theory? How might these two approaches work together?

What effects will each of the following have on the demand for small automobiles such as smart car?
A- small automobiles become more fashionable.
B- the piece of large automobiles rises ( the price of small automobiles renaming same).
C- income decline and small automobiles are an inferior goods.
D- consumers anticipate that the price of small automobiles will greatly come down in the near feature.
E- the price of gasoline substantially drops.

An industry structure describes the number and size of participants (buyers and Sellers), technology, and the ease of entry and exist of firms. When the number of sellers is many, the industry is said to be competitive and hence a single seller is said to operate under condition of perfect competition. Suppose that McDonald Restaurant offers (Good X, Burger) and operates in a competitive market and uses Tomatoes as its main input. What would happen to the supply of Good X in each of the following situations. if the price of cheese increases.

the government of Bassaland is looking for new revenue sources. It is considering imposing an excise tax on two goods: palm wine and diapers. If the price elasticity of demand for the goods are -0.47 and -1.89 respectively, which good should it tax if the goal is to raise revenue? If the government wants to tax only one good, which good should it tax if the goal is to discourage consumption? Explain your answer with the help of diagram.