Use the Following to Answer Question(s): Heartland and Soulland

question 6

Multiple Choice

Use the following to answer question(s) : Heartland and Soulland
Suppose that there are only two countries in the world, Heartland and Soulland.The two countries produce only two goods, corn and drill presses.At its current level of production, Heartland must give up production of 1/4 drill press to produce an additional 100 bushels of corn.Soulland must give up 1 drill press to produce an additional 100 bushels of corn.No trade now occurs between the two economies, and both economies are operating on their respective production possibilities frontiers.
-(Exhibit: Heartland and Soulland) If trade now opens up between the two economies, we can expect that:

• A) Heartland will export drill presses to Soulland and import corn from it.
• B) Heartland will export corn to Soulland and import drill presses from it.
• C) both countries will export corn and drill presses.
• D) both countries will import corn and drill presses.

Recognize the influence of taxes on labor market equilibrium, including employment levels and wage rates.

Understand the initial impact of a payroll tax on firms' costs and workers' take-home pay.

Identify the changes in employment levels resulting from the imposition of a payroll tax.

Analyze how a payroll tax affects the per-hour equilibrium wage paid by firms.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values are from the mean.

Inspiratory Reserve Volume (IRV)

The additional amount of air that can be inhaled after a normal inhalation, increasing lung volume beyond the tidal volume.

Expiratory Reserve Volume (ERV)

The additional amount of air that can be forcibly exhaled after a normal exhalation.

Functional Residual Capacity (FRC)

The volume of air remaining in the lungs after a normal, passive exhalation, critical for gas exchange between breaths.