A column by Christopher Mims in the Wall Street Journal summarized academic research showing that some firms
Question:
A column by Christopher Mims in the Wall Street Journal summarized academic research showing that some firms in the same industry have become much more productive than other firms. As we saw in Chapter 16, Section 16.1, wages depend on the marginal productivity of labor. Mims draws the conclusion that “the rise in [income inequality] since 1978 is almost entirely attributed to an increase [in wages] at more-productive firms that occurred as pay at less-productive firms remained relatively static.” If the main cause of increasing income inequality is differences in worker productivity across firms, do you believe that changes in individual income tax rates are likely to be the best way of reducing inequality? Briefly explain.
Step by Step Answer:
Changes in individual income tax rates are unlikely to be the best way of reducing income inequality ...View the full answer
Students also viewed these Business questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
This case was written by Professor Michele Greenwald, Visiting Professor of Marketing at HEC Paris, for use with Advertising and Promotion: An Integrated Marketing Communications Perspective 7th...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Selected accounts from the ledger of Restoration Arts for the fiscal year ended April 30, 2019, are as follows: Prepare a statement of owner's equity for the year. Apr 30 Doug Stone Capital Doug...
-
In recent years, many firms have been forced to restate the earnings that they previously reported in their public financial reports. A number of these restatements have been linked to attempts by...
-
Campbell Corporation, an accrual basis calendar year corporation, had income of $450,000 for financial statement purposes in year 7. This amount included book depreciation of $50,000. The related tax...
-
Milo's Market operates four departments. Management is concerned about the financial results of the dried goods department, which has shown a loss for the past 3 years according to the companys...
-
The following determination and distribution of excess schedule is prepared on January 1, 2012, the date on which Parker Company purchases a 60% interest in Share Company: On December 31, 2013,...
-
A cyclist accelerates from rest along straight, horizontal path for a time t accel = 17.5 s at a rate of a = 1.1 m/s squared. part a) Calculate the magnitude of the displacement, in meters, for the...
-
During the 1928 U.S. presidential election campaign, Herbert Hoover, the Republican candidate, argued that the United States should import only products that could not be produced here. Briefly...
-
An article in the Wall Street Journal on the recreational vehicle (RV) industry listed several factors that led to a larger quantity of RVs sold: a. Increasing confidence among households that their...
-
Twenty cancer patients volunteer for a clinical trial. Ten of the patients will receive a placebo and 10 will receive the trial drug. In how many different ways can the researchers select 10 patients...
-
A City accounts for its hospital in an Enterprise Fund. An individual brings a malpractice suit against the hospital in 2020. City lawyers goes to court, but estimate that it is probable they can...
-
Laura purchased a share of MVP Company for $26.43 one year ago. The stock paid a quarterly dividend of $0.50 during the year. What is the capital gain yield if the current stock price is $28.26?
-
1. Shika is a single mother and is a 2024 BCom graduate from the National University of Fiji. Soon after graduation, she found a job as an assistant accountant at Naivini Island Resort with the...
-
Kotzie won a $25,000 bowling scholarship from Mission Place Bowling Alley. The requirement for this scholarship was that Kotzie enroll in college full-time and maintain a "B" average. In 2022, Kotzie...
-
Andy Murray is single. His itemized deductions total $16,400 and he is in the 32% tax bracket. How much tax benefit will he get from itemizing rather than taking the standard deduction in 2023?...
-
Can we infer that more than 10% of Americans are self-employed (WRKSLF: 1 = Self employed, 2 = Someone else)?
-
The National Collegiate Athletic Association (NCAA) and the National Federation of State High School Associations (NFHS) set a new standard for non-wood baseball bats. Their goal was to ensure that...
-
Briefly explain whether the value of U.S. exports is typically larger or smaller than the value of U.S. imports. Are imports and exports now a smaller or larger fraction of GDP than they were 50...
-
A columnist in the New York Times observed that the entire point of investing in stocks is that you get greater long-term expected returns in exchange for tolerating bigger ups and downs. a. Why did...
-
According to an opinion column in the Wall Street Journal, Directors need to be held more accountable when they fail to set the proper tone at the top, and right now there is almost no consequence...
-
What are the common Hazard we have here in the philippines? Cite some brief examples. 2. Analyze How the governmy has been handling the pandemic, what are the approaches in risk Communication that...
-
You must then research best practices for using your chosen technology in a business setting. LinkedIn Based on this selection, describe the medium and its uses. Then invent a business scenario in...
-
Facebook revealed that it had manipulated the news feeds of over half a million randomly selected users to change the number of positive and negative posts they saw. It was part of a psychological...
Study smarter with the SolutionInn App