6. Study Questions and Problems #6True or False: As measured by the government, free health care, free public housing, day care, and job training for the poor will not reduce thepoverty rate.True, because all of these measures increase disposable income.O True, because all of these measures are in-kind transfers.False, because all of these measures directly increase cash income.False, because none of these measures are in-kind transfers.

The claim that government-funded programs like free health care, public housing, child care, and job…

Answered: 6. Study Questions and Problems #6 True…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Questions and Problems 6. An individual can earn $12 per hour if he or she works. Draw the budget constraints that show the monthly consumption-leisure trade-off under the following three welfare programs. a. The government guarantees $600 per month in income and reduces the benefit by $1 for each $1 of labor income.
Using the diagram above, which of the following is true? a. In country S the poorest 30 percent of the population receive 13 percent of the available income in country S. b. In country T the richest 10 percent of the population receive 23 percent of the available income in country T. c. In country S the richest 10 percent of the population receive 55 percent of the available income in country S. d. Country S has a more equal distribution of income than does country T. e. None of the above is true.
The table shows the distribution of personal income in the United States in 2016. Percentage of total income Households Poorest 20 percent 3.1 Second 20 percent Third 20 percent Fourth 20 percent Richest 20 percent 8.2 14.3 23.2 51.2 For all U.S. households to receive an equal share of income, what percentage of total income would the poorest 20 percent of households have to receive from higher-income groups? What percentage would the second poorest have to receive? >>> Answer to 1 decimal place. The poorest 20 percent of households would have to receive percent. The second poorest 20 percent of households have to receive percent.
1. According to part A of Table 5-1, what education level loses most (i.e., has the greatest decrease in wage) from immigration to the United States? Does this result depend on keeping the rental on capital constant? Explain why or why not. 2. Suppose that computers use 2 units of capital for each worker, so that KC = 2 • LC, whereas shoes use 0.5 unit of capital for each worker, so that KS = 0.5 • LS. There are 100 workers and 100 units of capital in the economy. a. Solve for the amount of labor and capital used in each industry. Hint: The box diagram shown in Figure 5-7 means that the amount of labor and capital used in each industry must add up to the total for the economy, so that Use these two equations to solve for LC and LS, and then calculate the amount of capital used in each industry using KC = 2 • LC and KS = 0.5 • LS. b. Suppose that the number of workers increases to 125 due to immigration, keeping total capital fixed at 100. Again, solve…
Wealth, earnings, and disposable income are just three of several ways of looking at inequality. Imagine a household that earns $80,000 per year from labor. In that year, it also receives an income of $3,000 from investments, pays $12,000 in tax, and receives $7,000 in transfers from the state. Which of the following is its market income and its disposable income? O $83,000; $71,000. O $83,000 $78,000. O $80,000; $68,000. O $80,000; $75,000. J
At the beginning of the year, you have a saw worth $2,000 and a bunch of trees. says it will pay you $4,000 to not cut down your trees. Freaks4Environment Instead, you hire Lei to use your saw to cut down all of the trees. At the end of the year: you sell trees Lei cut down for $27,000; you pay Lei $15,000; and your saw is now worth $1,000. Based on this information, how much GDP has been created? Round to two decimal places. Do not enter the currency symbol, but enter the negative sign if appropriate. If your answer is -$1.125, enter -1.13. 27,000
3. Suppose that Unemployment Insurance (UI) benefits are set according to the following rules: (i) minimum weekly earnings in last week of employment of $200.00 is needed to qualify; (ii) the maximum UI weekly benefit is $1000; and (iii) UI benefits are set equal to 50% of the last week’s earnings between the minimum and maximum levels A. Show the structure of the UI benefit system on a diagram. B. Compute both the UI benefit level and the replacement rate if weekly earnings in the last week of employment is: (i) $100; (ii) $500; and (iii) $3,000.
8. Factors that influence standard of living Which of the following government policies is least likely to increase the standard of living in the United States? O Investment in technology Raising the minimum wage paid to workers O Investment in education and skills training for workers O Investment in tools and capital for workers

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