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Q1. 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 $10 per hour.
A. Draw the person's budget constraint without the income guarantee.
B. Draw the person's budget constraint with the income guarantee.
C. Assume the income guarantee rises to $9,000 but with a 100% reduction rate. Draw the new budget constraint.
Q2. The May unemployment figures were released Friday, and at 8.2%, unemployment had increased by .1%, and new jobs were less than half of the projected number. What impact will this have on the U.S. economy?
What s the general pattern of the US income distribution over the last century. Explain about the timing of the changes.
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Hiro Nakamura is CEO of the Cola King Bottling Company, a small regional producer operating in the Pacific Northwest. Nakamura is considering two alternative expansion proposals
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Indicate how Ford's management should use this information to make sound strategic decisions.
Using the numbers that you calculated above, explain the relationship between the marginal cost and average variable cost.
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