Illustrate the following with supply and/or demand curves: a. A situation of excess labor supply (unemployment) caused by a "minimum wage" law. b. The effect of a sharp increase in heating oil prices on the demand for insulation material.

The payroll of YellowCard Company for September 2020 is as follows.

Total payroll was $480,000, of which$110,000 is exempt from Social Security tax because it repreented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of$7,000 was $400,000. Income taxes in the amount of$80,000 were withheld, as was $9,000 in union dues. The state unemployment tax is 3.5%, but YellowCard Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee's wages to$128,400 and 1.45% in excess of $128,400. No employee for YellowCard makes more than$125,000. The federal unemployment tax rate is 0.8% after state credit.

Instructions

Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately.

In June, the liability for federal and state unemployment tax for Excelsior Corporation is recorded at about the same amount as for previous months. Jackie Blette suggests that it usually begins to decrease in June, except when many new graduates are hired that month. You have been asked to investigate the payroll data to discover whether there is a problem. Examine the information below and on a separate sheet of paper write the correct amounts for the unemployment tax liabilities. $$ \begin{matrix}\text{Accumulated} & \text{June} & \text{Federal} & \text{State}\\\text{Earnings} & \text{Total} & \text{Unemployment } & \text{Unemployment}\\\text{Jan.–May} & \text{Earnings} & \text{Tax} & \text{Tax}\\ \mathrm{$4,260.00} & \mathrm{$810.00} & \mathrm{$6.48} & \mathrm{$43.74}\\\text{5,200.00} & \text{1,100.00} & \text{8.80} & \text{59.40}\\\text{6,450.00} & \text{1,250.00} & \text{10.00} & \text{67.50}\\\text{6,800.00} & \text{1,350.00} & \text{10.80} & \text{72.90}\\\text{3,600.00} & \text{1,200.00} & \text{9.60} & \text{64.80}\\\end{matrix} $$

Use Malone’s selected payroll information for the two semimonthly pay periods, April 1–15 and April 16–30 of the current year. Forms and a general journal are given. $$ \begin{matrix} & \text{Accumulated} & \text{Total Earnings }\\ & \text{Earnings,} & \text{for April 1–15}\\\text{Employee Name} & \text{March 31} & \text{Pay Period}\\\text{Bolser, Frank T.} & \mathrm{$4,860.00} & \mathrm{$810.00}\\\text{Denham, Beth R.} & \text{5,670.00} & \text{945.00 }\\\text{Harjo, Teresa S.} & \text{7,500.00} & \text{1,250.00}\\\text{Knutzen, John L.} & \text{3,720.00} & \text{620.00}\\\text{Prescott, Laura F.} & \text{4,560.00 } & \text{760.00}\\\text{Schmidt, Ian T.} & \text{6,900.00} & \text{1,150.00}\\\end{matrix} $$ Employer payroll tax rates are as follows: social security, 6.2%; Medicare, 1.45%; federal unemployment, 0.8%; state unemployment, 5.4%. Unemployment taxes are owed on the first $7,000.00 of earnings for each employee. Instructions: 1. Calculate the amount of earnings subject to unemployment taxes for the April 1–15 pay period. Note that Ian T. Schmidt has accumulated earnings on March 31 of$6,900.00. Therefore, only $100.00 ($7,000.00 – $6,900.00) of his April 1–15 earnings is subject to unemployment tax. 2. Calculate the employer payroll tax amounts for the April 1–15 pay period.

U.S. Unemployment. Barron's reported that the average number of weeks an individual is unemployed is $17.5$ weeks. Assume that for the population of all unemployed individuals the population mean length of unemployment is $17.5$ weeks and that the population standard deviation is 4 weeks. Suppose you would like to select a random sample of 50 unemployed individuals for a follow-up study.

c. What is the probability that a simple random sample of 50 unemployed individuals will provide a sample mean within $1 / 2$ week of the population mean?

Write the letter for the word that best completes given sentence.
_____ During the _________,the Unemployment rate increased while salary rates decreased.
a. remuneration
b. depreciation
c. recession
d. frugality

Which of the following is not the proper subject matter for macroeconomics?

a) unemployment levels

b) inflation rates

c) levels of national output

d) the price of corn e. the role of government policy

The self-reference effect best illustrates the value of __________.

Determine whether each of the following would increase or decrease the opportunity costs for mothers who decide not to work outside the home. Explain your answers.

Higher unemployment rates for women

Milton Friedman argued that consumers are more likely to alter their behavior based on changes in the unemployment rate. short-term changes in the economy. long-term changes in the economy. changes in the inflation rate.

Suppose that for years East Confetti’s short-run Phillips Curve was such that each $1$ percentage point increase in its unemployment rate was associated with a $2$ percentage point decline in its inflation rate. Then, during several recent years, the short-run pattern changed such that its inflation rate rose by $3$ percentage points for every $1$ percentage point drop in its unemployment rate. Graphically, did East Confetti’s Phillips Curve shift upward or did it shift downward?

For each of the total gross earnings amounts recorded in the past five pay weeks for Hot Suds Car Wash, determine these taxes: -employer’s FICA taxes (social security 6.2%, Medicare 1.45%) -federal unemployment tax (.8%) -state unemployment tax (5.4%). Use the form provided in the working papers. None of the employees has reached the taxable earnings limit. Total gross earnings: 1. $914.80 2.$1,113.73 3. $2,201.38 4.$791.02 5. $1,245.75

Suppose that for years East Confetti’s short-run Phillips Curve was such that each 1 percentage point increase in its unemployment rate was associated with a 2 percentage point decline in its inflation rate. Then, during several recent years, the short-run pattern changed such that its inflation rate rose by 3 percentage points for every 1 percentage point drop in its unemployment rate. Graphically, did East Confetti’s Phillips Curve shift upward or did it shift downward?

The table shows the unemployment rates r in the United States for selected years from 1990 through 2004. The time t is measured in years, with t=0 corresponding to 1990 .

Time, t	Rate, r
8	4.5
10	4.0
12	5.8
14	5.5

(a) Use a graphing utility to create a scatter plot of the data.

(b) Which of the following models best represents the data Explain your reasoning.

(1) $r=1.24 \sin (0.47 t+0.40)+5.45$

(2) $r=1.24 \sin (0.47 t-0.01)+5.45$

(3) $r=\sin (0.10 t+5.61)+4.80$

(4) $r=896 \sin (0.57 t-2.05)+6.48$

(c) What term in the model gives the average unemployment rate ? What is the rate?

(d) Economists study the lengths of business cycles, such as unemployment rates. Based on this short span of time, use the model to determine the length of this cycle.

(e) Use the model to estimate the next time the unemployment rate will be 5 percent less.