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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.
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.
q.briefly explicate what means by the market is a commons. in your brief essay create sure you cover each of following
Suppose the MPC is an economy is 0.9. The APC is initially 0.95 and disposable income is $4 billion.
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 unit tax to be levied on beer producers. the view of
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 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.
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..
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...
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.
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 how should it be allocated. Explain hardwood usage in the two lines of product are.
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