PRINCIPLES OF MICROECONOMICS (OER)
2nd Edition
ISBN: 9781947172340
Author: Timothy Taylor, Steven A. Greenlaw
Publisher: OpenStax
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Textbook Question
Chapter 15, Problem 2SCQ
Jonathan is a single father with one child. He can work as a server for $6 per hour for up to
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Suppose a person earns $500 a month. A social assistance program with a grant
amount of $1,000 a month and a clawback of 90% is implemented. What would be
the payment the person receives from the program and what's the total amount of
money they person will have to their disposal?
The payment from the assistance program is $450 and the total amount of
money the person has to their disposal is $950.
The payment from the assistance program is $550 and the total amount of
money the person has to their disposal is $1000.
The payment from the assistance program is $550 and the total amount of
money the person has to their disposal is $1050.
The payment from the assistance program is $950 and the total amount of
money the person has to their disposal is $1450.
Susan is a single mother with three children. She is a cashier at a food market earning $7.75 per hour and works up to 2,000 hours per year. She is eligible for government benefits, so if she does not earn any income, she will receive a total of $17,050 per year. She can work and still receive government benefits, but for every $1 of income, her government stipend is $1 less.
The government has decided to change the benefits policy of every $1 of income earned to reduce the government’s stipend by 60 cents. How will this change Susan's benefits received? What are her new choices? Complete the Revised Poverty Trap Table to present Susan’s options and provide answers to the following:
What are the advantages of Susan working?
What are the disadvantages of Susan working?
What are the advantages of Susan receiving government benefits?
What are the disadvantages of Susan receiving government benefits?
Based on your findings from the Poverty Trap Table, should Susan continue to work or…
Question 2
Suppose a person earns $500 a month. A social assistance program with a grant
amount of $1,000 a month and a clawback of 90% is implemented. What would be
the payment the person receives from the program and what's the total amount of
money they person will have to their disposal?
The payment from the assistance program is $450 and the total amount of
money the person has to their disposal is $950.
The payment from the assistance program is $550 and the total amount of
money the person has to their disposal is $1000.
The payment from the assistance program is $550 and the total amount of
money the person has to their disposal is $1050.
The payment from the assistance program is $950 and the total amount of
money the person has to their disposal is $1450.
Question 3
Suppose a person earns $1200 a month and welfare assistance program pays a
maximum grant of $1000 and has a clawback of 25%. Is the person eligible for the
program and if so what's the person's payment from the…
Chapter 15 Solutions
PRINCIPLES OF MICROECONOMICS (OER)
Ch. 15 - Describe how each of these changes is likely to...Ch. 15 - Jonathan is a single father with one child. He can...Ch. 15 - Imagine that the government reworks the welfare...Ch. 15 - We have discovered that the welfare system...Ch. 15 - How does the TANF attempt to loosen the poverty...Ch. 15 - A group 0f 10 people have the following annual...Ch. 15 - Table 15.9 shows the share of income going to each...Ch. 15 - Using two demand and supply diagrams, one for the...Ch. 15 - Using two demand and supply diagrams, one for the...Ch. 15 - Here is one hypothesis: A well-funded social...
Ch. 15 - Here is a second hypothesis: A well-funded social...Ch. 15 - Which set of policies is more likely to cause a...Ch. 15 - Why is there reluctance on the part of some in the...Ch. 15 - How is the poverty rate calculated?Ch. 15 - What is the poverty line?Ch. 15 - What is the difference between poverty and income...Ch. 15 - How does the poverty trap discourage people from...Ch. 15 - How can the effect of the poverty trap be reduced?Ch. 15 - Who are the near-poor?Ch. 15 - What is the safety net?Ch. 15 - Briefly explain the differences between TANF, the...Ch. 15 - Who is included in the top income quintile?Ch. 15 - What is measured on the two axes of a Lorenz...Ch. 15 - If a country had perfect income equality what...Ch. 15 - How has the inequality of income changed in the...Ch. 15 - What are some reasons why a certain degree of...Ch. 15 - What are the main reasons economists give for the...Ch. 15 - Identify some public policies that can reduce the...Ch. 15 - Describe how a push for economic equality might...Ch. 15 - What goods and services would you include in an...Ch. 15 - If a family of three earned 20,000, would they be...Ch. 15 - Exercise 15.2 and Exercise 15.3 asked you to...Ch. 15 - Explain how you would create a government program...Ch. 15 - Many critics of government programs to help...Ch. 15 - Think about the business cycle: during a...Ch. 15 - Explain how a country may experience greater...Ch. 15 - The demand for skilled workers in the United...Ch. 15 - Explain a situation using the supply and demand...Ch. 15 - What do you think is more important to focus on...Ch. 15 - To reduce income inequality, should the marginal...Ch. 15 - Redistribution of income occurs through the...Ch. 15 - How does a society or a country make the decision...Ch. 15 - Explain what the long- and short-term consequences...Ch. 15 - In country A, the population is 300 million and 50...Ch. 15 - In country B, the population is 900 million and...Ch. 15 - Susan is a single mother with three children. She...Ch. 15 - A group of 10 people have the following annual...
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- Which of the following represents a transfer payment? O You transfer $1,000 from your bank account to a mutual fund. The government sends your grandfather his Social Security check. O You make a payment to get legal documents showing you purchased a previously owned home. Your employer automatically transfers $100 each month from your wages to a non-taxable medical spending account.arrow_forwardConsider a working mother who is guaranteed an income of $18,000 per year from a combination of working and government assistance. In order to earn $20,000 herself, through work, how many hours would she need to work? $25,000 $20,000 $18,000 $16,000 $15,000 $10,000 $5,000 500 1,000 1,500 2,000 2,500 + Leisure (hours) Labor (hours) Select the correct answer below: 500 labor hours O O labor hours 2500 labor hours O 1000 labor hours Incomearrow_forwardNeema owns a rental property. Her tenant, Elena, had a job change and moved out of town. She had paid $1,200 rent per month, January through October of 2022. Per the lease, Elena paid an early lease cancellation penalty of $1,000. Neema was unable to rent the property to a new tenant until January 2023, when Kaiser moved in and began paying $1,200 per month. How much total rental income does Neema report for 2022? $12,000 $13,000 $13,200 $14,400 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
- Carole works 35 hours a week at a wage rate of $20. Thus, her total weekly income is $700 On this income, she pays total taxes of $49.00 However, she calculates that on the last hour that she works, she pays $4.00 Carole's average tax rate is% (Round your response to two decimal places) Carole's marginal tax rate is% (Round your response to two decimal places) Darrow_forwardPlease answer 1, 2, and 3! 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. The table below is patterned after Table 15.8 from the text. Number of Work Hours Earnings from Work Government Benefits Total Income 2000 $16,000 $0 $16,000 1600 $16,000 1200 $16,000 800 $16,000 400 $3200 $12,800 $16,000 0 $0 $16,000 $16,000 Complete the table. Is this program an example of a poverty trap? Explain your answer. If this program is an example of a poverty trap, how can this program be altered to avoid this problem?arrow_forwardJohn has gross biweekly earnings of $743.61. By claiming 1 more withholding allowance, John would have $19 more in his take home pay. How many withholding allowances does John currently claim?arrow_forward
- Find MPS if change in Savigs is $430 and the change in income is $550arrow_forwardSocial security payments are a form of _____ and available to ____arrow_forwardConsider an income guarantee program with an income guarantee of $3,000 and a benefit reduction rate of 50%. A person can work up to 2,000 hours per year at $6 per hour. Mia, Lucas, Thomas, and Deborah work for 100, 333 %, 400, and 600 hours, respectively, under this program. The government is considering altering the program to improve work incentives. Its proposal has two pieces. First, it will lower the guarantee to $2.000. Second, it will not reduce benefits for the first $3,000 earned by the workers. After this, it will reduce benefits at a reduction rate of 50%. a. Draw the budget constraint facing any worker under the original program. Explain. b. Draw the budget constraint facing any worker under the proposed new program. Explain. I c. Which of the four workers do you expect to work more under the new program? Who do you expect to work less? Are there any workers for whom vou cannot tell if they will work more or less? Explain.arrow_forward
- Theoretically and graphically explain the effect of Benazir income support program on the welfare of the consumers.arrow_forwardCalculate Social Security taxes, Medicare taxes, and FIT for Jordon Barrett. He earns a monthly salary of $11,900. He is single. Before this payroll, Barrett's cumulative earnings were $142,100. (Social Security maximum is 6.2% on $142,800 and Medicare is 1.45%.) Calculate FIT by the percentage method. (Use Table 9.1) Note: Round your answers to 2 decimal places. FIT Social Security taxes $ 737.80 Medicare taxes $ 172.55arrow_forwardIn 1972 the maximum earnings of a worker subject to Social Security tax (SST) was $9,000. The maximum earnings subject to SST in 2016 is $118,500. Whatcompound annual increase has been experienced over this 44-year period of time? How does it compare with a 3% annual increase in the consumer price index over the same period of time?arrow_forward
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