Reference no: EM131190751
The town of Greenville has three families, each with one child, and each of which earns $20,000 per year (pre-tax). Each family is taxed $4,000 per year to finance the public school system in the town, which any family can then freely attend. Education spending is $6,000 per student in the public schools. The three families differ in their preferences for education. Though families A and B both send their children to the public school, family B places a greater value on education than family A. Family C places the greatest relative value on education and sends their child to private school.
a. Graph the budget constraints facing each of the three families, and draw a possible indifference curve that could correspond to the choice each family makes. The town is considering replacing its current system with a voucher system. Under the new system, each family would receive a $6,000 voucher for education, and families would still be able to send their children to the same public school. Since this would be more costly than the current system, they would also raise taxes to $6,000 per household to pay for it.
b. Draw the budget constraint the families would face under this system. Suppose that when the new system is introduced, family A continues to send their child to public school, but family B now sends their child to private school (along with family C's child).
c. Explain how you know that family C is made better off and family A is made worse off by the voucher policy. d. Show, using diagrams, that family B could be made better or worse off by the voucher policy.
|
Design the control with three multiplexers
: Derive a table showing the multiplexer input conditions for the control specified in the ASM chart of Fig. P8-20.
|
|
Appropriate discount rate-what is the present value
: An investment will pay you $45,000 in 12 years. If the appropriate discount rate is 7.2 percent compounded daily, what is the present value?
|
|
What was the total debit to the purchases account
: What are the total cash disbursements from the cash disbursements journal and what was the total debit to the purchases account for January?
|
|
What is the dividend yield on the investment
: Roy purchased shares of Ernst stock for $57.32 per share one year ago. The stock pays annual dividends of $ .60 a share. Today, he sold all of his shares for $82.50 a share. What is the capital gain yield on the investment? What is the dividend yield..
|
|
Graph budget constraints facing each of the three families
: Graph the budget constraints facing each of the three families, and-- draw a possible indifference curve that could correspond to the choice each family makes.
|
|
What are other ways both qualitative and quantitative
: Why is this participant observation an example of qualitative research? What are other ways, both qualitative and quantitative, that you could research this question? Finally, how are theory, research, and practice advanced by the combination of q..
|
|
Demonstrate about the federal income tax structure
: Calculate and compare the ratio of the Smiths’ to the Joneses’ taxable income and the ratio of the Smiths’ to the Joneses’ taxes. What does this demonstrate about the federal income tax structure?
|
|
The estimated effect of class size on student outcomes
: one reason for the lack of an observed relationship between class size and student outcomes is that schools may put more disruptive children in smaller classes.- How would this practice bias the estimated effect of class size on student outcomes?
|
|
Examples of the primary risk management techniques
: Write a 700- to 1,050-word paper in which you explain the elements of the risk management process. Provide examples of the primary risk management techniques.
|