Problem
1. Your boss offers you a wage increase of 10 percent. Is it possible that you are worse off with the wage increase than you were before? Explain your answer.
2. How will the following affect labor force participation rates, labor supply, and unemployment?
a. Because the retired elderly are a larger and larger fraction of the U.S. population, Congress and the president decide to raise the Social Security tax on individuals to continue paying benefits to the elderly b. A national child care program is enacted, requiring employers to provide free child care services.
c. The U.S. government reduces restrictions on immigration into the United States.
d. The welfare system is eliminated.
e. The government subsidizes the purchase of new capital by firms (an investment tax credit).
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.