Of the four wage policies shown in the accompanying diagram, the one most likely to induce a worker totake her maximum amount of leisure (ie, not work) is panelwhich is called aIncomeIncomeIICALeisure Hours per WeekLeisure Hours per WeekIncomeIIIncomeIVALeisure Hours per WeekLeisure Hours per Week O A. II, Guaranteed Basic IncomeOB. IV, Wage SubsidyOC. II, Guaranteed Basic IncomeO D. II, Earned Income Tax Credit

The cost of leisure for a person is the wage rate. This is because if a person chooses leisure for…

Of the four wage policies shown in the accompanying diagram, the one most likely to induce a worker to take her maximum amount of leisure (ie, not work) is panel which is called a Income Income II D Leisure Hours per Week Leisure Hours per Week Income III Income IV Leisure Hours per Week Leisure Hours per Week

Of the four wage policies shown in the accompanying diagram, the one most likely to induce a worker to take her maximum amount of leisure (ie, not work) is panel which is called a Income Income II D Leisure Hours per Week Leisure Hours per Week Income III Income IV Leisure Hours per Week Leisure Hours per Week

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter15: Poverty And Economic Inequality

Section: Chapter Questions

Problem 30CTQ: What goods and services would you include in an estimate of the basic necessities for a family of...

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Using two demand and supply diagrams, one for the low-wage labor market and one for the high-wage labor market, explain how information technology can increase income inequality if it is a complement to high-income workers like salespeople and managers, but a substitute for low-come workers like file clerks and telephone receptionists.
How is the poverty rate calculated?
Who is included in the top income quintile?
What goods and services would you include in an estimate of the basic necessities for a family of four?
Using two demand and supply diagrams, one for the low-wage labor market and one for the high-wage labor market, explain how a program that increased educational levels for a substantial number of low-skill workers could reduce inflame inequality.
Explain how a country may experience greater equality in the distribution of income, yet still experience high rates of poverty. Hint: Look at the Clear It Up 'How do governments measure poverty in low-income countries?' and compare to Table 15.5.
Susan is a single mother with three children. She can earn 8 per hour and works up to 2,000 hours per year. However, if she does not earn any income at all, she will receive government benefits totaling 16,000 per year. For every 1 of income she earns, her level of government support will be reduced by 1. Create a table, patterned after Table 15.3. The first column should show Susans choices of how many hours to work per year, up to 2,000 home. The second column should show her earnings from work. The third column should show her level of government support, given her earnings. The final column should show her total income, combining earnings and government support.
Jonathan is a single father with one child. He can work as a server for $6 per hour for up to 1,500 hours per year. He is eligible for welfare, and so if he does not earn any income, he will receive a total of 10,000 per year. He can work and still receive government benefits, but for every 1 of income, his welfare stipend is 1 less. Create a table similar to Table 15.4 that shows Jonathans options. Use four columns, the first showing number of hours to work, the second showing his earnings from work, the third showing the government benefits he will receive, and the fourth column showing his total income (earnings + government support). Sketch a labor-leisure diagram of Jonathans opportunity set with and without government support.
Describe how each of these changes is likely to affect poverty and inequality: Incomes rise for low-income and high-income workers, but rise more for the high-income earners. Incomes fall for low-income and high-income workers, but fall more for high-income earners.
3 of 1 estion s page What does the Canadian poverty rate measure? O a. the number of people whose annual household income is less than $17 568 the number of people whose annual household income is less than $21 728 the percentage of people whose income falls below an identified income standard the percentage of government expenditures allocated to antipoverty programs O b. О с. O d.
1. write a short essav tha summarizes the problems by which the official poverty rate is determined.2. Sit down with some classmates and estimate what a family of four (two parents, two voung children) in your area would have to day annually for food. clothing. shelter. energy, and other necessities of lite. What figure do you end up with? How does this sum ot money compare with the official poverty line of 22,213 in 2010 for a family of four?3. Why do you think the maiority of Americans assume poor people lack the motivation To WORK4. Explain to a friend how labor force participation data indicate that it is inaccurate to think that poor people lack the motivation to work.
A5 South Africa's top 10% of earners contribute almost half of all revenue, and the richest 10% of its residents holds 85.6% of net wealth, according to the OECD, which sees scope for the tax system to be used more to reduce inequality. Based on the above paragraph, which of the following statements is INCORREC A. South African 's bottom 90%of income earners contribute allof to the revenu B. South Africa's income inequality levels are very hig C. South Africa' s income inequality levels are very lo D. South Africa's income contribution is equalwheT