Question
a.George faces a 10 percent probability of being unemployed for six weeks each year. During that time, he collects $3,240 in Employment Insurance (EI) benefits.
a.George faces a 10 percent probability of being unemployed for six weeks each year. During that time, he collects $3,240 in Employment Insurance (EI) benefits. What is the actuarially fair premium for this EI coverage?
b.Suppose a self-employed economist makes a salary of $49,939. How much will that economist pay in CPP contributions if the rate is 9.9 percent, the yearly maximum pensionable earnings (YMPE) is $53,600, and the yearly basic exemption is (YBE) is $3,500?
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Intermediate Microeconomics and Its Application
Authors: Walter Nicholson, Christopher M. Snyder
12th edition
978-1133189022, 1133189024, 1133189032, 978-1305176386, 1305176383, 978-0357687000, 978-1133189039
