Determine whether True or False
a) A firms labor demand curve will be more elastic if product demand is more elastic.
b) The earned income tax credit has been shown to increase labor force participation.
c) monopsonists are defined by their ability to set prices in the product market.
d) an increase in the demand for wine, hold all else constant, will lead to a higher number of winemakers employed but a lower market-clearing wage in the winemaker industry.
e) market labor demand is typically more elastic in absolute value than market labor supply.
f) a person who has a substitution effect that dominates his income effect will increase hours worked when an income tax is imposed.
g) a firm's labor demand will be more elastic in the long run if it has other inputs that could be easily substituted for labor.
h) a wage rate below the market-clearing wage will create an excess supply of labor.
i) a person with indifference curves that are convex to the origin will enjoy a greater marginal utility of leisure for his 19th hour of leisure than the marginal utility of his 11th hour of leisure.
j) living wage laws are narrower in coverage than minimum wage laws.© BrainMass Inc. brainmass.com October 16, 2018, 5:58 pm ad1c9bdddf
Investigate income tax credit and other questions.
Identify common income Tax Minimization strategies.
Library Research Assignment
You and your spouse are preparing your first income tax return as a married couple. You want to save some money and prepare the tax return yourself, so you need to gather information on the possible credits and deductions that are available to married couples and decide the best way to file. You know you can either itemize your deductions or use the standard deduction, depending on the amount of itemized deductions. You believe it would be best to itemize deductions to have the biggest deductions and thus pay the lowest taxes you can by lowering your taxable income.
Using the library, Internet, and all other resources, do the following:
- Give an example of 3 deductions and 3 tax credits and how they decrease your tax liability.
- Deductions: Medical and dental expenses, mortgage interest, charitable contributions and student loan interest
- Credits: Child credit, earned income credit, Hope scholarship credit, and Lifetime learning credit
- Explain the difference between a tax deduction and a tax credit
Objective: Identify common income tax minimization strategies