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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.
illustrate the effect of capital formation by comparing the product posibility curves,at the present time and ten years in the future for two economies,one with a high and the other with a lowrate of capital formation.
A brilliant young scientist is killed in a plane crash. It is anticipated that he could have earned $240,000 a year for the next 50 years. The attorney for the plaintiff’s estate argues that the lost income should be discounted back to the present at..
The service a homeowner performs when she Moser yard is not included in GDP because
q1. if the aggregate-demand curve is given by the equation p400-2xy and long run aggregate supply100 the long run
Government policy can affect business investment only by changing expenditures. It cannot alter people's expectations about the future. There is no correlation between real and financial transactions.
Discuss how the Coase Theorem provides an alternative to a government regulation and provision of services. How is the definition of private property a critical part of this analysis? Please explain in detail.
Media aggregators are utilized to bring together mass volumes of news together in one piece for consumers. With the continued advent of new technologies, the Internet has become ripe with various aggregators. What are the potential advantages of util..
If you invest $300 in a stock, borrowing $240 of the $300 at 10 percent interest, and the stock price rises by 15 percent, what is the return on your investment?
How can trade liberalization exist on a nondiscriminatory basis versus a discriminatory basis? What are some examples of each?
Illustrate difference between economies of urbanization and economies of localization. Give examples of each.
Let a firm be in long run competitive equilibrium. The market price will be equal to
There are two types of farming tractors on the market, the FT250 and the FT500. The only difference between the two is that the FT250 is more prone to accidents than the FT500. At these prices, 2,000 of each model are purchased each year. What is the..
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