Question

Assume that a welfare program pays $200 per week if a person does not work and...

Assume that a welfare program pays $200 per week if a person does not work and reduces the welfare benefit of dollar for dollar with earnings. Assume that the individual does not have any other non wage income. Also assume that the individual has a market wage rate of $10/ hour. Assume a maximum of 120hours of leisure per week (T= 120/ week).

Suppose that in the absence of the program, the person would work 20 hours per week. What does the program have on the individuals hours of work? USE A GRAPH (NO EXCEL) TO SHOW ILLUSTRATE THE ANSWER.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Assume the gross wage of w=$10 per hour and gross non-wage income YN = $5000 per...
Assume the gross wage of w=$10 per hour and gross non-wage income YN = $5000 per year. Assume a maximum of 6,000 hours of leisure per year (T= 6000 per year ), so that full income for the worker is $65,000. Draw the budget constraint under each of the following taxes and transfer schemes. 1. A welfare program that pays $8,000 per year if the person does not work and reduces the welfare benefit dollar for dollar with earnings (100%...
1) John participates in a welfare program which pays him $6,000 dollars. He can work but...
1) John participates in a welfare program which pays him $6,000 dollars. He can work but he hose 50 cents of the welfare check for every dollar he earns over $5,000. How much wage income will he have to earn to escape poverty if the poverty line for him is $17,000 per year? A) $14,000 B) $17,000 C) $11,000 D) $12,000 2) John Doe participates in a welfare program which pays him $6,000 dollars. He can work but he loses...
Solving Moral Hazard by Lowering the Benefit Reduction Rate An individual can earn $15 per hour...
Solving Moral Hazard by Lowering the Benefit Reduction Rate An individual can earn $15 per hour if he or she works. Assume an individual can work up to 200 hours in a month, or not work at all and consume 200 hours of leisure. Draw the budget constraints that show the monthly consumption-leisure trade-off between the following three welfare programs. a. The government guarantees $900 per month in income and reduces that benefit by $1 for each $1 of labor...
Suppose that a worker’s utility (i.e., preferences) with respect to total income (Y) and hours of...
Suppose that a worker’s utility (i.e., preferences) with respect to total income (Y) and hours of leisure time per week (LT) can be represented by the following Cobb-Douglas utility function: U = Y0.4 ∙ LT0.6 (note: A=1; α=0.4; β=0.6) Assume that the market wage is $25 per hour of work (H), and his/her non-labor income is $300 per week. The worker has 70 hours per week to allocate between labor market activity and leisure time (i.e., T = 70). Given...
Question ID 2-22: Consider a person whose happiness from the consumption of goods (C) and time...
Question ID 2-22: Consider a person whose happiness from the consumption of goods (C) and time away from paid work (L) is characterized by the function U = C2L.(C squared L). When working they can earn $10 per hour and have 10 hours per day available for work. They receive a gift of $5 per day regardless of how much they work. Answer the following: (a) What is their reservation wage? (b) What is their optimal choice of work time...
Cost-Benefit Analysis Problem: Imagine an individual who is working 20 hours a week for $10 per...
Cost-Benefit Analysis Problem: Imagine an individual who is working 20 hours a week for $10 per hour, because, although she would prefer to work 40 hours a week at that wage, she is unable to find full-time employment. Further assume that there is a proposal to reduce the speed limit on inter-state highways, and this would result in the individual spending 1 hour a week more driving. In conducting a cost- benefit analysis of the proposal, should this hour be...
Lauren does not work and receives $500 per week in dividends and interest from her vast...
Lauren does not work and receives $500 per week in dividends and interest from her vast financial empire. She is just as happy if she works one hour per week to raise her income to $520, or works two hours per week to raise her income to $544, or works three hours per week to raise her income to $572, or works four hours per week to raise her income to $604, as she is when she does not work...
Julie employs Katrina as her assistant. Katrina is a utility maximizing worker with u(z, f) =...
Julie employs Katrina as her assistant. Katrina is a utility maximizing worker with u(z, f) = z1/2f1/2 and MRS = f/z. Katrina has non-labour income 40 and allocates 24 hours per day between labour h and leisure z. Julie pays Katrina a wage of 5 dollar per hour. Provide an Indifference Curve and Budget Line Diagram to illustrate and quantify, hours of leisure, hours of work and consumption. Katrina is over working. What hourly wage would make Katrina voluntarily cut...
.Curious George must decide how much to work. He has 60 hours per week available that...
.Curious George must decide how much to work. He has 60 hours per week available that he can spend either working or engaging in leisure (which for him is creating various kinds of mischief). He can work at a wage rate of $5 per hour. The Man with the Yellow Hat (who looks after George) also gives him an allowance of $100 per week, no matter how much George works. George's only source of income that he can use for...
There is a 40-hour work week per person in a factory. A total of 2700 labour...
There is a 40-hour work week per person in a factory. A total of 2700 labour hours of maintenance activities exist. Assuming weekly disruption (e.g. sick leave, annual leave, business trip, etc.) is 15% of weekly capacity and average emergency work deduction is 50% of the net weekly capacity. Calculate the backlog for a 20-person maintenance department.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT