Travis Roach
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Silly firms, job growth is for...

9/4/2011

 
I hope that you are all having a great Labor Day weekend. A recent jobs report noted that zero, yes zero, 0, zilch, nada, jobs were created over the past month. This article gives a good look at why that might be happening. We will go into this in much more detail after we've learned how to use supply and demand analysis, but for now try answering this question.

You've been given the chance to work for the weekend and earn $1000, but you've also won a paid trip to Dallas and box seats at the Cowboy's opening game (a prize worth $750) the same weekend. If all you cared about is money which would you choose?

Now what if there was a chance that you had to pay a 35% tax on the income you made from working. What would you choose then, the certain $750 dollar value of seeing the Cowboys or potentially only making $650 because a tax is suddenly imposed on your weekend job?

raj saleh
9/14/2011 03:09:33 am

in the first scenario i would probably pick to work for the weekend.

in the second scenario i choose to go to the game after calculating that if i made 650 dollars that weekend, at a apy of .002 ( which will always be subject to change depending on the economy) it would take close to 80 years for the return to equal that of the trip value.

Michael DuPont link
9/15/2011 05:34:01 pm

I would most definitely take the money in both scenarios, but not the way it's presented. If it were me, I'd take the $1000 straight up OR if there was a tax on the $1000 I'd sell the box seats on one of the many available websites set up for just that hoping that I might be able to jack up the price closer to the $1000 I would've received.


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