Microeconomics Exam 4 5/4/14 10:40 AM Log out of class Microeconomics Exam 4 Time Limit: 180 minutes (unless you have an official Academic...
Microeconomics Exam 4
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Log out of class
Microeconomics Exam 4
: 180 minutes (unless you have an official Academic Accommodation
Authorization and you've notified the instructor, in which case your time limit will be
Part I. You must provide a written explanation for the questions in this section to
1.(6 points) Evaluate the following statement: 'A 401-k plan is preferred to a Roth
IRA because the 401-k gives you a tax credit on your principal, while the Roth
IRA only gives you a tax credit on your earnings.'
2.(4 points) How is the concept of income equality related to marginal income tax
3.(10 points) CA tax revenues are allocated to public colleges and universities in
CA to subsidize your education. What effect does this subsidy have on the Labor
Market? Make sure to reference figure 16.7(a) in your answer.
Part II. Select the best answer to the following questions. Each correct answer is
worth one point.
1. If there is an increase in labor productivity, there will be a:
Leftward shift of the labor supply curve.
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