1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vilka [71]
3 years ago
7

Consider an income guarantee program with an income guarantee of $6,000 and a benefit reduction rate of 50%. A person can work u

p to 2,000 hours per year at $8 per hour. A. Draw the person’s budget constraint with the income guarantee. B. Suppose that the income guarantee rises to $9,000 but with a 75% reduction rate. Draw the new budget constraint. C. Which of these two income guarantee programs is more likely to discourage work? Explain.

Business
1 answer:
andriy [413]3 years ago
8 0

Answer:

A. Please see attachment .

B.Please see attachment . B) Benefits will end under these conditions when earned income is $9,000/.75 = $12,000, just as shown in a. The difference is that the all-leisure income is higher, but the slope of the line segment from 500 hours of leisure to 2,000 hours of leisure is flatter.

C. (C) A higher income guarantee with a higher reduction rate is more likely to discourage work for two reasons

Explanation:

(C) A higher income guarantee with a higher reduction rate is more likely to discourage work for two reasons.  First, not working at all yields a higher income.  Second, a person who works less than 1,500 hours will be allowed to keep much less of his or her earned income when the effective tax rate is 75%. With a 75% benefit reduction rate, the effective hourly wage is only $2 per hour (25% of $8).

You might be interested in
Before implementing controls in a newly developed system, management should PRIMARILY ensure that the controls:
jolli1 [7]

Answer:

The correct answer to the following question is option A) satisfy a requirement in addressing a risk .

Explanation:

The reason why management is implementing controls is to mitigate the risk in the newly developed system, that is why management should select that control which primarily mitigate the risk, which have been identified by the management. While designing a control, it would be necessary to consider all the aspects given in the question for a control to be best but in reality it might not be possible.

4 0
3 years ago
Anton is a salesperson at GF Motors Co. Ben, a customer, has an engine complaint with the car he purchased from GF Motors. Anton
posledela

Answer:

He should offer solution and gain agreement that the proposed solution is acceptable.

Explanation:

Achieving customer satisfaction is essential for any Company to be a successful entity. Anton is one of the representatives of Company and hence he needs to present the Company in good light before the customers. One of the ways of doing this is to pay attention to their grievances with the attempt to solve and redress the same as Anton should do in the above manner.

5 0
3 years ago
Which is a sate practice when online?
DIA [1.3K]

Answer:

Letter D is guess

Explanation:

Don't give out personal info, have a complex password and don't give it out to anyone, don't click on random pop up adds, and use a firewall

7 0
3 years ago
Use the following information to calculate cash received from dividends: Dividends revenue$31,300 Dividends receivable, January
MrRissso [65]

Answer:

$30,200

Explanation:

Calculation for the Cash received from dividends

Cash received from dividends = $31,300 − ($4,000 − $2,900)

Cash received from dividends =$31,300-$1,100

Cash received from dividends = $30,200

Therefore the Cash received from dividends will be $30,209

8 0
2 years ago
3. Imagine that you are a nonsmoker sharing a room with a smoker. According to the Coase theorem, what determines whether your r
Sauron [17]

Answer:

See the explanation below.

Explanation:

Coase theorem states that it is possible for private parties to solve the problems of externalities with involving a third party it is costless for them to bargain over resource allocation.

Given this description, we can now answer the question as follows:

a.  What determines whether your roommate smokes in the room?

Based on the above, the smoker and non-smoker will bargain over whether it is possible for the smoker to continue smoking in the room based on the value of the choice of each party.

If the value placed on clean air by the nonsomker is greater than the value the smoker placed on smoking, the bargain will result in stopping smoking by the smoker. But if the value placed on smoking by the smoker is greater than the value the nonsmoker placed on clean air, the bargain will result in the smoker continue to smoke in the room.

b. Is this outcome efficient?

This outcome is efficient as the bargaining process is costless or as long as no transaction costs prohibit them from reaching an agreement.

c. How do you and your roommate reach this solution?

It is possible to reach this solution either by the non-smoker paying off the smoker to stop smoking, or the smoker paying off the non-smoking roommate to continue smoking.

6 0
2 years ago
Other questions:
  • A coffeemaker manufacturing company is planning a new coffeemaker that features 12 cup sizes, five brew strengths, three auto-ti
    13·1 answer
  • Pretax financial statement income for the year ended December 31, 2018, was $25 million for Scott Pen Company. Scott’s taxable i
    7·2 answers
  • Which description is the best example of human capital?
    11·1 answer
  • The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are as follows: Date Transaction
    11·1 answer
  • A lumber mill bought a shipment of logs for $58,000. When cut, the logs produced a million board feet of lumber in the following
    15·1 answer
  • The VP of Marketing directs you to begin looking at markets for Powerfully Fit's products: "Assuming that we focus on the desire
    12·1 answer
  • Consensus ad idem means which of the following?
    15·2 answers
  • DL variances
    12·1 answer
  • if a farm has nfio of $100,000, and an opportunity cost total of $25,000, what is the farm's return to equity? (round to the nea
    14·1 answer
  • Impact of new vendor with zero opening balance
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!