Sep 28, 2017 term paper 2

A CONSUMER HAS A CHOICE BETWEEN TWO OCCUPATIONS. ONE OCCUPATION PAYS A SALARY OF $80,000 BUT…

This paper concentrates on the primary theme of A CONSUMER HAS A CHOICE BETWEEN TWO OCCUPATIONS. ONE OCCUPATION PAYS A SALARY OF $80,000 BUT… in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 40. For more details and full access to the paper, please refer to the site.

A consumer has a choice between two occupations. One occupation pays a salary of $80,000 but gives no chance for tax evasion. The other pays $75,000 but does permit evasion. With the probability of detection p = 0:3, the tax rate t = 0:3, and the fine rate F = 0:5, which occupation will be chosen if U = Y½?


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