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Economics 211

Economics 211. Chapter 6 – Clicker Question Presentation #3. S. Price. 10.5 10 8.5. D 1. D 2. 238 250. Quantity.

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Economics 211

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  1. Economics 211 Chapter 6 – Clicker Question Presentation #3

  2. S Price 10.5 10 8.5 D1 D2 238 250 Quantity Suppose the government has decided to institute a $2-per-hour Social Security tax on research assistants and is trying to determine the optimal way to do so. The equilibrium wage is $10 per hour, and the equilibrium number of research assistants is 250. If the government makes employers pay the entire $2-per-hour tax, what will happen to the number of workers employed (Q), the amount employers pay per hour, including wage and taxes (PE), and the amount workers earn after taxes (PW)? 1. Q = 238, PE = $10.50, PW = $8.50   2. Q = 238, PE = $12.00, PW = $10.00   3. Q = 250, PE = $10.50, PW = $8.50   4. Q = 250, PE = $12.00, PW = $10.00 Response Counter

  3. If the government makes employers pay the entire $2-per-hour tax, what will happen to the number of workers employed (Q), the amount employers pay per hour, including wage and taxes (PE), and the amount workers earn after taxes (PW)? • Q = 238, PE = $10.50, PW = $8.50   • Q = 238, PE = $12.00, PW = $10.00   • Q = 250, PE = $10.50, PW = $8.50   • Q = 250, PE = $12.00, PW = $10.00 23 of 23

  4. S2 S1 Price 10.5 10 8.5 D1 238 250 Quantity Suppose the government has decided to institute a $2-per-hour Social Security tax on research assistants and is trying to determine the optimal way to do so. The equilibrium wage is $10 per hour, and the equilibrium number of research assistants is 250. If the government makes workers pay the entire $2-per-hour tax, what will happen to the number of workers employed (Q), the amount employers pay per hour, including wage and taxes (PE), and the amount workers earn after taxes (PW)? Q = 238, PE = $10.50, PW = $8.50   Q = 238, PE = $10.00, PW = $8.00   Q = 250, PE = $10.50, PW = $8.50   Q = 250, PE = $10.00, PW = $8.00 Response Counter

  5. Suppose the government has decided to institute a $2-per-hour Social Security tax on research assistants and is trying to determine the optimal way to do so. If the government makes workers pay the entire $2-per-hour tax, what will happen to the number of workers employed (Q), the amount employers pay per hour, including wage and taxes (PE), and the amount workers earn after taxes (PW)? • Q = 238, PE = $10.50, PW = $8.50   • Q = 238, PE = $10.00, PW = $8.00   • Q = 250, PE = $10.50, PW = $8.50   • Q = 250, PE = $10.00, PW = $8.00 22 of 23

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