6. Problems and Applications Q6 A 1996 bill reforming the federal government's antipoverty programs limited many welfare recipients to only two years of benefits. This change gives people the incentives to find a job Under which arrangement would the economy be mo O Welfare benefits last for only two years. O Welfare benefits last forever. quickly than if welfare benefits lasted forever. more less nt?

1. Using a standard supply and demand framework and the assumption that skilled and unskilled workers are complementary (rather than substitutes), an increased supply of low skilled immigrant labor is expected to  a.lower the wages of unskilled workers, and raise the wages of skilled workers. b.lower the wages of unskilled workers, but have no impact on the wages of skilled workers. c.raise the wages of unskilled workers, and lower the wages of skilled workers. d.lower the wages of both skilled and unskilled workers.

Dollars per Hour 6. Historical Perspective a. Analyze Visual 2: Historical Minimum Wage Data. . What trends do you observe in the minimum wage over time? • Why do you think the government has increased the minimum wage over time? FRED-Federal Minimum Wage Rate under the Federal Fair Labor Standards Act 1 1970 1975 Shaded areas indicate U.S. recessions. 1980 1985 1990 1905 2000 2005 2010 2015 O Source: U.S. Department of Labor fred.sticuisted.org

2. In the United States, two government programs that provide economic assistance to poor families are the Earned Income Tax Credit (EITC) and Temporary Assistance to Needy Families (TANF). According to economic theory, how do these programs affect the labor supply of eligible families? O Both programs increase labor force participation. O Both programs decrease labor force participation. O The EITC increases labor force participation, whereas TANF decreases labor force participation. O TANF increases labor force participation, whereas the EITC decreases labor force participation. O Among those who work, both programs increase hours of work.

Please help me to solve question 6 d.   I am having a little bit of trouble understanding it.   Thank you