3E Economics par. 6.4 and 6.6

• Economie
• Middelbare school
• vwo
• Leerjaar 3

Negative external effect

Positive external effect

6.2 ass 6

b

c

a

d

e

f

g

Par. 6.3 assignment 9a

1. From € 2,50 to € 3,00
2. From € 2,50 to € 3,50

Par. 6.3 assignment 9c

1. 2 mln x € 1,-
2. 3 mln x € 1,-

3E Economics par. 6.4 and 6.6

Frits is applying for a job at Philips. The demand for labour is ... ?

1. Frits
2. Philips

Labour Market

Supply of labour: Everybody that works or wants to work

( for more than 12 hours a week )

Demand for labour: Companies ( and public sector ) 

Price: wages

Labour Market

Supply of labour > Demand for labour 

means unemployment

leads to a situation with lower wages

Demand for labour > Supply of labour

means tight labour market

leads to a situation with higher wages

Labour market

Collective agreements: employment arrangement for all employees in a certain industry

Financial: f.e. wage

Non financial: f.e. number of days of

Trade Unions negotiate on behalf of employees

Labour market

Trade Unions and employees go for the most favourable CA with high wages

Employers don't want labour costs to be too high

So, tough negotiations

Employees have to be careful with very high goals:

High wages -> high labour costs -> high prices -> less customers ->

-> lower production -> less employees needed -> higher unemployment

( or companies replace employees by machines to avoid high labour costs )

Labour market

Minimum wage:

Protect workers against exploitation

Minimum wage:

Supply of labour increases and Demand for labour decreases

So higher unemployment

Taxes

The Netherlands have a progressive tax system

People with a higher income pay a higher percentage of taxes than people with a lower income ( tax brackets )

( See page 204 and 206 )

This makes differences in income smaller

Harry: gross income € 40.800,-. net income € 26.250,-
Jeroen: gross income € 61.200,-. net income € 36.720,-
Does this country have a progressive tax system?
Show your calculation!

Assignment

Tax% Harry = ( 40.800 - 26.250 ) / 40.800 = 35%

Tax% Jeroen = ( 61.200 - 36.720 ) / 61.200 = 40%

or

61.200 / 40.800 = 1,5

36.720 / 26.250 = 1,4

Taxes

Box system

Box 1: income from employment ( and home )

Box 2: investments in companies ( BV, NV )

Box 3: income from savings and investments

Box 1: source 2 page 204
How much tax does someone with a taxable income of € 30.000,- have to pay?

1. € 10.965
2. € 11.389
3. € 12.255
4. € 23.220

Box 1

1> Gross income

2> Taxable income = Gross income - Deductable items

3> Taxes = Bracket% x Taxable income

F.e. taxable income = € 30.000,-

36,55% x 20.142 = 7.361,90

40,85% x ( 30.000 - 20.142 ) = 4.026,99

Total = 11.388,89

Box 3

F.e. Equity = € 80.000,-

1,30% x ( 80.000 - 70.800 ) = 119,60

0,60% x ( 70.800 - 30.000 ) = 244,80

Equity until 30.000 is exempted

Total = 364,40

Taxes

Total Taxes = Tax Box 1 + Tax Box 2 + Tax Box 3 - Tax credits

Net income = Gross income - Total taxes

Par. 6.6 assignment 3

Par. 6.6 assignment 3

Taxable income = 62.760 - 11.432 = 51.328

( 51.328 - 20.142 ) x 0,4085 = 12.739,48

20.142 x 0,3655 = 7.361,90

Total = 20.101,38

Taxes = 20.101,38 - 2.182 - 805 = 17.114,38

Net income = 62.760 - 17.114,38 = 45.645,62

Hw.

Par. 6.4 assignments 3 and 18

Par. 6.6 assignment 1