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Consider an income guarantee program with an income guarantee of $6,000 and a benefit reduction of 50%. A person can work up to 2,000 hours per year at $8 per hour.
a. Draw the person’s budget constraint without the income guarantee. Fully label the graph.
b. Draw the person’s budget constraint with the income guarantee. Fully label the graph.
c. Suppose the income guarantee rises to $9,000 but with a 75% reduction rate. Draw the new budget constraint. Fully label the graph.
Discuss and describe the effect you have on this process when you pay for your late-night pizza delivery, or your other take-out food choices, using your bank debit or credit card. What is the effect if you obtained cash from the ATM to pay for this ..
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,141 per year, paid at the beginning of each year, What is the most she should pay for uniform annual maintenance to make..
What is supply and demand. Illustrate what is the value of the tax revenue collected from the buyers. Why wasn't the government able to collect $12 per tire on 60 tires sold( the original equilibrium quantity).
In 1990, the GDP of Canada was $680 Billion dollars, and the exchange rate was that $1 Canadian was worth 85 U.S. cents. In 2000, the GDP of Canada was $1000 billion as measured in Canadian dollars and the exchange rate was that $1 Canadian was worth..
Why are cigarettes and alcohol the most heavily taxed items in the US? Now, if the government increases the price of these items by 10%, how does this affect the stores that sell them? Provide a detailed response.
The gross domestic product of countries Babistan, Turma, and Deru are $1,500, $2,500, and $3,500, respectively. There are 1,500 miles between country Babistan and countries Turma, and Deru. Does the gravity equation predict that there will be more tr..
In a macroeconomic context, what are implicit liabilities? Payments that the Federal government undertakes only during periods of recession. Money owed to people possessing government issued bonds.
If there are only two goods, if more of good 1 is always preferred to less, and if less of good 2 is always preferred to more, then: indi erence curves slope downwards.
A manufacturer has paid an engineering firm $200,000 to design a new plant, and it will cost another $2 million to build the plant. In the meantime, however, the manufacturer has learned of a foreign company that offers to build an equivalent plant f..
Federal Express (a package company) lobbying the U.S. Department of Transportation to increase annual terminal fees at airports. Sailboat manufactures lobbying to increase the tolls on New York City’s George Washington Bridge.
If the marginal cost of the separate products is high, a seller should consider _______ bundling instead of ________ bundling.
Provide an appropriately labeled boxplot of the data below and use a randomization test to examine whether the null hypothesis holds that male and female turtles have the same mean serum cholesterol.
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