Consider an income guarantee program with an income guarantee of $6,000 and a benefit reduction rate of
Question:
Consider an income guarantee program with an income guarantee of $6,000 and a benefit reduction rate of 50%. A person can work up to 2,000 hours per year at $8 per hour.
a. Draw the person’s budget constraint with the income guarantee.
b. Suppose that the income guarantee rises to $9,000 but with a 75% reduction rate. Draw the new budget constraint.
c. Which of these two income guarantee programs is more likely to discourage work? Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 63% (11 reviews)
a A person will no longer be eligible for benefits when he or she works 150...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
Consider an income guarantee program with an income guarantee of $3,000 and benefit reduction rate of 50%. A person can work up to 2,000 hours per year at $6 per hour. Alice, Bob, Calvin, and Deborah...
-
A rechargeable flashlight is advertised to last up to 2 1/2 hours per charge and to recharge overnight. A test was conducted which measured the time a light lasted before needing a recharge. A random...
-
Consider a person who can work up to 80 hours each week at a pre-tax wage of $20 per hour but faces a constant 20% payroll tax. Under these conditions, the worker maximizes her utility by choosing to...
-
In Problems 2734, the given pattern continues. Write down the nth term of a sequence {a n } suggested by the pattern. 2 1 1 ,3,-, 5, 7 6 ....: 8
-
Acquisition: The board of directors of Quicker com Inc. is considering an acquisition of Honest Communication Inc. (HCI) for a total price of $3 billion, to be finalized January 1, 2016. After...
-
This question asks you to compute valuation effects for the United States in 2015 using the same methods mentioned in the chapter. Use the bea.gov website to collect the data needed for this...
-
An ideal gas flows isentropically through a convergingdiverging nozzle. At a section in the converging portion of the nozzle, \(A_{1}=0.1 \mathrm{~m}^{2}, p_{1}=600 \mathrm{kPa}(\) abs \(),...
-
1. Describe the importance of inventory management as it relates to the Farmers Restaurant. 2. What ordering system would be best for this situation? 3. Given the following information, provide an...
-
How to compute to know if chintu should employ in house marketing or to simply koutsource this task? Chintu wants to ensure that her new business has a strong focus on corporate social...
-
1. Based on the information provided in the case below, what is the key strategic goal for Tim Hortons as of August 2014? It would be a year of dramatic change for Tim Hortons Inc. On August 26,...
-
Since the free market (competitive) equilibrium maximizes social efficiency, why would the government ever intervene in an economy?
-
A good is called normal if a person consumes more of it when her income rises (for example, she might see movies in theaters more often as her income rises). It is called inferior if a person...
-
Suppose the returns on long-term corporate bonds and T-bills are normally distributed. Based on the historical record, use the NORMDIST Function in Excel to answer the following questions; (a) What...
-
Explain the factors that influence the development of multichannel customer contact strategies.
-
Measurement of websites concerns the recording of key events involving customers using a website. Briefly explain five different types of event.
-
Select a recent campaign from a charity and with reference to their website campaign pages, identify how they should set campaign goals and review effectiveness.
-
More than just an online fashion for 20-somethings, ASOS has pioneered social shopping. Currently one of the most successful online fashion retailers founded in the UK, ASOS offers tens of thousands...
-
Describe what is meant by positioning strategy. How do the market, customer, internal, and competitive analyses relate to positioning strategy?
-
Zen Ltd provides insurance. D section offers a specialist insurance policy for delivery staff employed by a national distribution company. A new computer system has allowed the company to collect...
-
Express mass density in kg/m3 and weight density in lb/ft3. 1. Find the mass density of a chunk of rock of mass 215 g that displaces a volume of 75.0 cm3 of water. 2. A block of wood is 55.9 in. x...
-
What is permanent alimony? What functions does it serve? Why is permanent alimony not really permanent?
-
The town of Greenville has three families, each with one child, and each of whichearns $20,000 per year (pre-tax). Each family is taxed $4,000 per year to finance the public school system in the...
-
A number of Web sites, such as www.quickquote.com, offer instant quotes for term life insurance. Use one such Web site to compare the prices of $1 million 10-year term life policies for 50-year-old...
-
A number of Web sites, such as www.quickquote.com, offer instant quotes for term life insurance. Use one such Web site to compare the prices of $1 million 10-year term life policies for 50-year-old...
-
es Hart, Attorney at Law, experienced the following transactions in Year 1, the first year of operations: 1. Accepted $16,600 on April 1, Year 1, as a retainer for services to be performed evenly...
-
Dahlia Corporation has a current accounts receivable balance of $439,516. Credit sales for the year just ended were $5,503,810. a. What is the receivables turnover? Note: Do not round intermediate...
-
Why does the organizational structure hold political significance? Provide an in-depth analysis of this concept using examples from both academic literature and real-world instances. Additionally,...
Study smarter with the SolutionInn App