•Do you know of anything that employers often do that is actually illegal, under the ESA, for an employer to do in Ontario? Support your claim with researched evidence.

Samantha has an annual non-labour income of $5000. Suppose she has the total available time of 4160 hours per year. Samantha’s wage rate is $15 per hour, and she chooses to work 2000 hours in a year. Suppose when Samantha’s wage rate increases from $15 to $18 per hour, she will work 2040 hours. At $18 per hour, if she works 2200 hours per year, she would be indifferent to her original work decision before the wage increase. a- Draw a diagram to show all the given information related to Samantha’s work circumstances. Calculate all the relevant income levels and label them in the graph. b- Calculate Samantha’s income effect, substitution effect and total effect related to the wage increase. Show them in the diagram.

1.a State the "Law of Demand" 5 pts b Look at these Graph 3 XX Graph 4 graphs: In graph 3 a higher price results in a higher quantity, in graph 4 a lower price results in a lower quantity. This means the "law of demand" is disproven. 1 Do you agree? Why or why not? 10 pts 2. Let's say that the prevailing wage rate is $15. You(the Queen or King) are thinking of proposing a minimum wage of $20 or $10. a. Is the $20 proposal a price ceiling or floor? Is the $10 proposal a price ceiling or floor? 10 pts b. Who is the buyer and seller? (demand curve, supply curve)? 5pts c. What would be the result of both policies. Le.would this result in a surplus or shortage, and what would you call this? 5 pts. 3. Suppose that air pollution is a problem. a. Describe a "cap and trade" policy as a possible solution 8 pts b What, if any, externalities are addressed by this program. Include in your explanation whether these are positive or negative, and how the policy ameliorates them. +12 pts cWhat might be some drawbacks to this policy? 5 pts extra credit Your answers to the above should be complete enough to answer the question. You can use verbal, graphical, mathematical explanations in your answer. Your answer to #3 a, should be at least 125 words. You may use other sources, please note them. The text treatment of all the above is sufficient.

Question One Consider an individual aged 64 who is eligible to collect full social security (public pension) benefits of $6,000 for a year. They have no other income but can work at a weekly wage rate of $600 for a maximum of 52 weeks. Receipt of benefits from the social security program is retirement tested. Specifically, the individual can earn up to $9,000 in annual wage income without a reduction in benefits; however, after $9,000 of earnings, benefits are reduced by 50% for every dollar earned, until the benefits are exhausted. a) Carefully draw and label the budget constraint for this individual. (6 Marks) b) Suppose previously there was a retirement test, and then the test is eliminated, i.e., the individual now is allowed to keep all benefits, irrespective of their labour earnings. How would this affect the individual's labour supply? (4 Marks)

Deborah has 80 hours per week available for work and leisure. Her current wage rate is $25 per hour. Deborah has $400 of rental income every week. a- Construct a proper diagram to describe Deborah’s choice of working 40 hours per week. Calculate Deborah’s maximum possible income and optimal income, and show them in the diagram.b- Suppose Deborah recently moved into her boyfriend’s place. She shares the household expenses and is “taxed” 50% of her wage income. Draw another diagram to compare Deborah’s choice in Part a) and a new labor supply decision of working 50 hours per week due to the “tax”. Clearly label out the income effect, substitution effect and total effect in the diagram.

Guidance on content You need to • Summarise your analysis in a report with a word limit of 2,000 words. Describe historical data for more than one economic variable over the period 2000 to now. If data availability for a country is limited, you can still focus on that country as long as you highlight the limitation and explain where you looked for data. The data analysis is expected to be descriptive, so you don't need to discuss the causes of trends and changes unless you feel it is relevant (e.g. for the policy discussion). Explain 1 or 2 policy challenges currently faced by each country. In your policy discussion draw on economic theory and the historical data. Include theory diagram(s). Use tables and charts to display data values. Consider including data values that lend themselves to cross-country comparison, i.e. values in the same units. Consider showing data for both countries in the same table or chart. Include your sources as in-text references in the report text and as a note below each table and chart, with full details in the reference list at the end (and explanations in the sourcing notes appendix A). Reflect on the management of the project and draw lessons.