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Federal housing and food stamp subsidy programs are two of the largest in-kind transfer programs for the poor. President Barack Obama's 2011 budget allocated the Housing Choice Voucher Program $19.6 billion. Many poor people are eligible for both programs: 30% of housing assistance recipients also used food stamps, and 38% of food stamp program participants also received housing assistance (Harkness and Newman, 2003). Suppose Jill's income is $500 a month, which she spends on food and housing. The price of food and housing is each $1 per unit. Draw her budget line. If she receives $100 in food stamps and $200 in a housing subsidy (which she can spend only on housing), how do her budget line and opportunity set change?
Suppose that you are interested in estimating the ceteris paribus relationship between y and x1. For this purpose you also collect data on two control variables, x2 and x3. Let β˜ be the simple regression estimate from y on x1 and let βˆ be the multi..
Does free trade equate to fair trade? Does free trade exist anywhere in the world? Respond to the questions and support your answers with examples.
tabulate or graph the results analyze and discuss the results noting any interesting tures expectedunexpected relate to
The income tax system in a country requires each citizen to pay 10% of income on earnings up to $40,000, and then pay 20% on any earnings over $40,000. If an individual has an income of $69971, then what is his marginal tax rate, in percentage te..
Suppose the own price elasticity of market demand for retail gasoline is -0.8, the Rothschild index is 0.7, and a typical gasoline retailer enjoys sales of $1,900,000 annually. What is the price elasticity of demand for a representative gasoline r..
Suppose that country A produces two goods (C and T) under conditions of constant opportunity costs. Given its resources, the maximum C that it can make is 1200 units, and the opportunity cost of making one additional T is 4 units of C.
The tangency condition implies the Euler equation MU(Ct) = (1+r1 ) MU (Ct+1). Now assume the marginal utility functions are MU (Ct) =βtct-1/α (1) where α is the intertemporal elasticity of substitution(IES) (a) Derive the specific Euler equat..
Explain how the exchange rate acts as an automatic stabilizer in an economy with flexible exchange rates.
Assume that by investing $2000000 in transportation system we can prevent 30 accidents per year and save another $100 on annual maintenance cost of vehicals using the system ( 2000 vehicles). The annual maintanence cost for this system is $200000.
What are the alternative shapes that the relationship between input and output takes? What is the relationship between these shapes and the shape of the cost function?
We wish to design the common-base stage of Fig. 11.93 for a -3-dB bandwidth of 10 GHz.
What is the probability that the annual return in a given year will exceed 15%? Suppose that the fund managers change the holdings of the fund such that the mean becomes 15% and the standard deviation becomes 5%. What are the new values for the pre..
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