1 a poor person who has an income of 1000 receives 100

Assignment Help Microeconomics
Reference no: EM13375500

1). A poor person who has an income of $1,000 receives $100 worth of food stamps. Draw the budget constraint if the food stamp recipient can sell these coupons on the black market for less than their face value.

2). Under a welfare plan, poor people are given a lump sum payment of $L. If they accept this welfare payment, they must pay a high tax, t= 1/2, on anything they earn. If they don't have to pay a tax on their earnings. Show that whether an individual accepts welfare depends on the individual's tastes.

3). Suppose that Roy could choose how many hours to work at a wage of w and chose to work seven hours a day. The employer now offers him time-and-a-half wages (1.5w) for every hour he works beyond a minimum of eight hours per day. Show how his budget constraint changes. Will he choose to work more than seven hours a day?

Reference no: EM13375500

Questions Cloud

Why would a state or local government establish a capital : why would a state or local government establish a capital projects fund? what type of project might be considered a
1-provide a well-explained definition of industrial : 1-provide a well-explained definition of industrial economic regulation.2-provide a well-supported explanation of how
What will a close out sale at year end from one of a : what will a close out sale at year end from one of a companys main suppliers do to the companys balance sheet?what will
Explain the statement that an individual bank has little : explain the statement that an individual bank has little ability to expand the money supply unless all the other banks
1 a poor person who has an income of 1000 receives 100 : 1. a poor person who has an income of 1000 receives 100 worth of food stamps. draw the budget constraint if the food
A technology is invented that makes labor and capital : a technology is invented that makes labor and capital perfect one to one substitutes in the production of mint
How would market forces affect the amount of time the : how would market forces affect the amount of time the proven oil reserves will last assuming no new oil reserves are
Consider the following information for cowboys town for the : consider the following information for cowboys town for the year ended december 31 2015.expenses - parking garage
1 in 2009 the interest rate on 20-year bonds was 2 per year : 1. in 2009 the interest rate on 20-year bonds was 2 per year on switzerlands government bonds and 3.5 on u.s.

Reviews

Write a Review

Microeconomics Questions & Answers

  Explain how is the human development index calculated

Which variables are included and how are they combined What are the Millennium Development goals Who established them What are the targets for poverty and hunger and which regions are "off track" for this goal

  Question on inelastic demand

Changes in price do not always impact demand to the same degree, and in some cases change in price impact demand very little. Such goods are said to have relatively inelastic demand.

  What is the marginal cost per unit

A purely competitive firm finds that the market price for its product is $25.00. It has a fixed cost of $100.00 and a variable cost of $17.50 per unit for the first 50 units and then $30.00 per unit for all successive units. Does price exceed aver..

  A firm in a purely competitive industry is currently

a firm in a purely competitive industry is currently producing 1000 units per day at a total cost of 450. if the firm

  Explain the difference between absolute advantage and

Explain the difference between absolute advantage and comparative advantage. Which is more important in determining trade patterns, absolute advantage or comparative advantage? Why?

  The new york times reported that the fda was holding

Consumers stand to benefit from more accurate and informative advertising. Accept, for the sake of argument, that the advertisements do create a false impression. Pharmaceutical companies, publishers, and broadcasters have an interest in maintaining ..

  How gross domestic product affected recession

Briefly Explain how the Gross Domestic Product (GDP) affected the recession in the United States throughout the late President Bush and early President Obama years.

  Exercise 1the following production plans are feasiblethe

exercise 1the following production plans are feasiblethe negative numbers stand for inputs and the positive one for

  Do you think we should erect trade barriers to keep out

It is often alleged that Japanese producers receive subsidies from their government permitting them to sell their products at a low price in the U.S. market.

  What texts analysis of inflation-unemployment cycle suggest

As the economy slipped into recession in 1980 and 1981, the Fed was under enormous pressure to adopt an expansionary monetary policy. Suppose it had begun an expansionary policy early in 1981. What does the text's analysis of the inflation-unemplo..

  Explain current u.s. fiscal and monetary policies

Is current U.S.Monetary Policy expansionary or restrictive?Do YOU think that current U.S. Fiscal and Monetary policies should be expansionary or contractionary? Briefly indicate why YOU think this way.

  Explain automatic stabilizer and spending multiplier

The school of economic thought which argues that through tax reductions, and deregulation, government creates the proper incentives for the private sector to increase aggregate supply is known as the.

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