Income guarantee programs is more likely to discourage work

Assignment Help Business Economics
Reference no: EM131245201

Consider an income guarantee program with an income guarantee of $5,000 and a benefit reduction rate of 40%. A person can work up to 2,000 hours per year at $10 per hour. 1. Draw the person’s budget constraint with the income guarantee. Be sure to place appropriate labels similar to those found in the slides/lecture. 2. Suppose that the income guarantee rises to $7,500 but with a 60% reduction rate. Draw the new budget constraint. Make sure it is visible. 3. Which of these two income guarantee programs is more likely to discourage work? Explain briefly. 

Reference no: EM131245201

Questions Cloud

Which job offers the best start for mary : The job pays $40,000 and includes annual raises for good performance. The benefits package includes company paid insurance and tuition reimbursement. Employees receive one week vacation the first year and three weeks' vacation thereafter. In addi..
Calculate equilibrium quantity of employment and wage rate : Calculate the equilibrium quantity of employment and wage rate in this labor market. What is the principle-agent problem between employers and employees in a labor market?
First mover is dominating market : A first mover is dominating a market, with revenues of $40 million annually. The average total cost of the firm is #02 million, of which $19 million is fixed. How can the first move keep others from entering the market?
Draw the skip list after each insert : State the greatest possible lower bound that you can for the all-pairs shortest paths problem, and justify your answer.
Income guarantee programs is more likely to discourage work : Consider an income guarantee program with an income guarantee of $5,000 and a benefit reduction rate of 40%. A person can work up to 2,000 hours per year at $10 per hour. Draw the person’s budget constraint with the income guarantee. Be sure to place..
Describe three risk factors which influence behavior : Identify and describe three risk factors which influence behavior (may include considerations of brain development). Discuss how each factor influences behavior. Analyze strategies teachers may use to support the process of changing or replacing beha..
Should the project be undertaken : The company's tax rate is 40% and its cost of capital is 15%, based on the existing rate of inflation. Should the project be undertaken?
Calculate the price at time t of the digital caplet : Calculate the price at time t of the digital caplet that pays α at time (T + α) if LT > K, and zero otherwise, under the two different models (I) and (II).
What is the impact of the historically low interest rates : What is the impact of the historically low interest rates in the U.S. economy since the Great Recession on borrowers and savers (particularly retired persons)?

Reviews

Write a Review

Business Economics Questions & Answers

  What is the market value of this patent

Assume a firm has a patent on one of its products whose sale generates $32,700/year more revenue than production costs. If the annual interest rate is 20 percent, what is the market value of this patent.

  Qbriefly explicate what means by the market is a commons in

q.briefly explicate what means by the market is a commons. in your brief essay create sure you cover each of following

  Technological improvement modify

Suppose the MPC is an economy is 0.9. The APC is initially 0.95 and disposable income is $4 billion.

  What would the optimum level of abatement been

EPA issued 30 tons of permits to two different utilities. If the utilities had been truthful about what it cost them to mitigate a ton of pollution and EPA had been able to make the marginal benefits and marginal cost equal (balanced). what would the..

  Suppose the government is considering the imposition of a

suppose the government is considering the imposition of a unit tax to be levied on beer producers. the view of

  What changes have you seen due to subprime mortgage crisis

What changes have you seen due to the subprime mortgage crisis in the U.S. housing market and bubble? What do you think will occur in the next 5 years given the demand and supply of land as well as the policies adopted [if any] by the Congress in res..

  What happens to the money supply

What happens to the money supply if the Federal Reserve Bank increases interest rates at their next meeting in September? Make sure to include the appropriate equation. Make sure to include a money graph.

  Motivated the policymakers cautious behaviour

In April 2000, the seasonally adjusted unemployment rate was 3.8%. By June 2001, the unemployment rate has increased to 4.5% yet the measures by the fedreal reserve tlo reduce short-term interest rates were taken in stages, and in fact the unemployme..

  What would be the quantity traded and equilibrium price

Suppose demand is still described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. If there are no price controls, what would be the equilibrium price. Suppose demand is still described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q...

  Determine which of the trade regulations impacts

Select an industry with which you are familiar and determine which of the trade regulations impacts that organization the most. Support your response with specific examples.

  Benefits to the company despite ongoing economic recession

What decisions related to expatriates can organizations take to maximize the benefits to the company despite the ongoing economic recession? Do you think a company that paid more careful attention to selection could further boost their chances of suc..

  Explain hardwood usage in the two lines of product

Explain how should it be allocated. Explain hardwood usage in the two lines of product are.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd