Plot disposable income as a function of earned income

Assignment Help Finance Basics

Reference no: EM13286435

A proposal for a negative income tax is designed to provide an income guarantee for each person, irrespective of his age or status, of $3,000 per year. Thus, a family of four would have an income guarantee of $12,000 per year. The transfers under the program will be phased out at a rate of 25 percent as earned income increases. Calculate the break-even level of income for a family of four. If all families above the break-even level of income pay a flat-rate 25 percent tax on their earnings, plot disposable income as a function of earned income. Comment on the costs of this plan.

Reference no: EM13286435

Questions Cloud

Find the current in the inner ring in the xy-plane : Two very thin concentric rings lies in the xy-plane with their centers at the origin. The outer ring has a current of 1.5 A in the +uφ direction and has a radius of 50 cms. The inner ring has a radius of 30 cms. The magnetic field at the point (0,..

Explain the drug amphetamine and c6h5ch2ch(ch3)nh2 : The drug amphetamine, C6H5CH2CH(CH3)NH2, Kb = 7.8 multiplied by 10-4, is usually marketed as the hydrogen bromide salt, C6H5CH2CH(CH3)NH3+Br

Find the displacement vector for the motion of projectile : A projectile is launched at an angle of 60o with respect to the horizontal from the edge of a cliff which is 100 m high. Its initial speed is 30 m/s. find the displacement vector for the motion of the projectile

Find the output resistance of the inverter in each states : Consider a CMOS inverter fabricated in a 0.25-μm CMOS process for which VDD = 2.5 V, Vtn-Vtp = 0.5 V, and μnCox = 3.5μpCox = 115 μA/V2. In addition, QN and QP have L = 0.25 μm, and (W/L)n = 1.5.

Plot disposable income as a function of earned income : If all families above the break-even level of income pay a flat-rate 25 percent tax on their earnings, plot disposable income as a function of earned income. Comment on the costs of this plan.

Determine the charge on the bead : A 1.50mm -diameter glass bead is positively charged. The potential difference between a point 1.50mm from the bead, What is the charge on the bead

Plot the recipients money income-leisure tradeoff : show her equilibrium allocation of time between work and leisure per day. Show that it is possible to have more than one most-preferred outcome.

Find what is the maximum number of possible transitions : If an FSM has N states, what is the maximum number of possible transitions that could exist in the FSM. Assume that no pair of states has more than one transition in the same direction and that no state has a transition point back to itself.

Would recipient be as well off under the housing voucher : Would this recipient be as well off under the housing voucher scheme as he would be with a cash transfer of equal value?

User Account

All Pages