Assume that workers whose are less than $8000 currently pay no federal income taxes. Suppose a new government program guarantees each worker $4000, whether or not he or she earns any income. For all earned income up to $8000, the worker must pay a 50- percent tax. How is the program likely to affect the labor supply curve of workers? For workers whose wages such that their pre-tax earned incomes are less than $8000, labor supply will be.. a. zero because there will be no incentive to work b. zero because there will be a negative income effect (in terms of work hours) c. zero because after-tax wages will be higher d. positive because after-tax wages will be higher e. positive because there will be a positive substitution effect (in terms of work hours

Q: The top labour income tax bracket in Molvania applies to people with incomes of $500,000 and above.…

A: A labor income tax is a tax that is levied on the income earned by an individual through their work…

Q: In 2018, the poverty threshold was raised to $24,858 from the 2010 threshold of $22,113 for a…

A: The poverty threshold or poverty line is the minimum amount of income needed to cover basic needs in…

Q: The following graph shows the labor market for research assistants in the fictional country of…

A: Tax is a charge government imposed on the taxpayers. Tax is the revenue for the government, it helps…

Q: 8) Can this program have no effect on labor supply? If yes show how graphically. h) Can this program…

A: the social security disability insurance(DI) program was restructured so that the disabled could get…

Q: Incomes for both low-income and high-income workers go up. However, the increase is higher for high-…

A: Poverty is the number of people living below the poverty line. Inequality refers to the income…

Q: Households Lowest 20 percent Second 20 percent Third 20 percent Fourth 20 percent Highest 20 percent…

A: Let us assume that total income of everyone is $100 which means lowest 20% earns $5, next 20% earns…

Q: ou are considering hiring an employee whose marginal revenue product will be $17 per hour, and the…

A: Given information: The marginal revenue of the product is 17.  The market wage is 15.

Q: Explain all right as well as wrong options In 1986 Congress drastically cut the marginal tax rate…

A: The Tax Reform Act of 1986 was probably the most significant reform of the federal income tax in the…

Q: Consider a perfectly competitive labor market with a very inelastic supply of labor. If a payroll…

A: Elasticity of labor supply measures the responsiveness of number of labor supplied to changes in the…

Q: In 2018, the poverty rate was 4.7% for married couple families and 12.7% for father-only…

A: Poverty: - Poverty is the economic condition of a person in which that person does not even possess…

Q: A sobering census report: Americans' meager income gains The Census Bureau reported that median…

A: Income inequality refers to the unequal distribution of income among individuals or households…

Q: Which one of the following is the most likely to be associated with an increase in the incidence of…

A:

Q: Suppose that country B has a population of 5,000 households and a poverty line of $15,000. 4,000…

A: The objective of the question is to calculate the poverty headcount ratio for country B. The poverty…

Q: Eight statements regarding the redistribution of income expenditure programs are provided. Match the…

A: Public Assistance: This program is targeted at families with minor children, very low income, and…

Q: Explain the reasons for rising income inequality in the United States. If there are arguments…

A: The term income inequality indicates the extent to which income is ununiformly distributed…

Q: adie T.M. Alexander (1898-1989) was the first black woman in the U.S. to receive a PhD in Economics…

A: The unequal distribution of income among people or households within a society or between societies…

Q: The dynamic nature of poverty can be observed through... [Select multiple answers]    a transition…

A: Poverty refers to the situation when some of the people are unable to get basic necessities with…

Q: By drawing a diagram of labor demand and labor supply curves, illustrate how workers and firms share…

A: The equilibrium wage rate and quantity of labor employed in a market are determined by the…

Q: Raka has 80 hours per week that she can allocate to work or leisure. Her job pays a wage rate of $20…

A: The microeconomic theory of utility maximisation can also be applied in determination of optimal…

Q: "How can Income Inequality in the United States be Reduced?"

A: Income inequality refers to the unequal dispersion of wage inside a society, where a few people or…

Q: Eric earns a base salary of $50,000 as a shipwreck diver and is subject to the following…

A: Marginal tax rate on drive:Eric already earns the $50,000, so an extra earning income $5,000 above…

Q: The Temporary Assistance for Needy Families (TANF) program: Multiple Choice O O required businesses…

A: This can be defined as the tool that is used by the individual, business, or any other organisation…

Q: Laura earns a base salary of $50,000 as an event planner and is subject to the following…

A: Taxation is a crucial aspect for any government. It is the compulsory payment/fee paid by the…

Q: Would free health care reduce poverty, as measured by the government? Would free public housing,…

A: Poverty: Poverty relates to a financial condition where an individual or household cannot create…

Q: Consider a population of 10 people with the following incomes 1,1,3,3,4,4,4,6,8,10 with a poverty…

A: The poverty gap is a financial measure which captures the mean shortfall of the total population…

Q: If the poverty threshold is approximately $16,000 for a household of three, what is the ratio of…

A: Given information - Poverty threshold = $16,000 Total family income = $12,000 Formula for…

Q: Many economists believe that a more effective way to supplement the income of the poor is through a…

A: A person or firm is required by law to pay taxes to the government based on their income or…

Q: "Examine the economic impact of a country implementing a universal basic income (UBI). Discuss how a…

A: The issue is to survey the possible financial effect of a nation carrying out a widespread essential…

Q: LABOUR SUPPLY 1. Consider an economy with a 100% clawback welfare program. If the government reforms…

A: FEEL  FREE TO  ASK  FOR CLARIFICATIONS

Q: Shari can work up to 80 hours each week at a pre-tax wage of $20 per hour but faces a 10% payroll…

A: In the above questions, it is given that : Shari can work up to 80 hours per week Pre-tax wage =…

Q: Consider an economy with two types of workers - less productive and more productive. Explain why…

A: Productivity-It refers to how much output can be produced with a given set of inputs. It increases…

Q: Assume that workers whoses are less than $8000 currently pay no federal income taxes. Suppose a new…

A: Initially, first, $8,000 was untaxed. so we don't know the tax rate so assumed at 0 to make it…

Q: Calculate domestic income with given information:- Compensation of employees = $2000 Operating…

A: Domestic income=Compensation of employees+Operating surplus+Mixed income

Q: Would this transfer increase, decrease, or have no effect on income inequality in this group?…

A: Income: It refers to the money which people earn. The income is used by people to purchase things in…

Q: Using the above Lorenz Curve, answer the following questions. . .   Approximately what percentage…

A: The Lorenz curve is a graphical representation of the distribution of income or wealth in a society.…