See the income and benefits information for a wage earner in an antipoverty program with a phased-out approach in the table below. How much more could one earn in total income if he chose to work 500 additional hours beyond whatever amount he currently works? Table 1: The Labor-Leisure Tradeoff with Assistance Reduced by 50 Cents for Every Dollar Earned Amount Worked Total Government Total (hours) Earnings Support $18,000 Income $18,000 $20,000 $22,000 $24,000 500 $4,000 $16,000 1,000 $8,000 $14,000 $12,000 $12,000 $10,000 1,500 2,000 $16,000 $26,000 2,500 $20,000 $8,000 $28,000 Select the correct answer below: O so O $2,000 O $4,000 $18, 000

See the income and benefits information for a wage earner in an antipoverty program with a phased-out approach in the table below. How much more could one earn in total income if he chose to work 500 additional hours beyond whatever amount he currently works? Table 1: The Labor-Leisure Tradeoff with Assistance Reduced by 50 Cents for Every Dollar Earned Amount Worked Total Government Total (hours) Earnings Support $18,000 Income $18,000 $20,000 $22,000 $24,000 500 $4,000 $16,000 1,000 $8,000 $14,000 $12,000 $12,000 $10,000 1,500 2,000 $16,000 $26,000 2,500 $20,000 $8,000 $28,000 Select the correct answer below: O so O $2,000 O $4,000 $18, 000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Empirical studies show that the average woman earns $0.80 for every dollar earned by the average man, after controlling for age and education. Further, the average woman earns $0.92 for every dollar earned by the average man after controlling for occupation . The conclusion is made that occupational choice reduces the wage gap 12 cents and discrimination is left to explain the remaining 8 cents. a) Explain why discrimination may explain more than 8 cents of the 20 cent differential (and occupational choice may explain less than 12 cents of the differential). b) Explain why discrimination may explain less than 8 cents of the 20 cent differential.
Suppose a single parent can work up to 16 hours per day at a wage rate of$10 per hour. Various income maintenance programs have been developed to assurea minimum level of income for low-income families. Aid to Families withDependent Children (AFDC) was established with the Social SecurityAct of 1935. The family was given an income subsidy depending on family size. Under this program, the family’s benefi t was reduced by $1 forevery dollar earned. Suppose the maximum daily subsidy for the singleparent described in this problem is $40.a. Draw the daily budget constraint without program participation forthe single parent described in this problem.b. On the same graph, draw the daily budget constraint under AFDC forthe single parent described in this problem.c. What effect does this program have on the incentive to work? Explain.
Consider an individual who must drive to his place of work. Assume that there are 16 available hours in the day, that his wage rate is $20 per hour, and that he has nonlabour income of $100 per day. The commute takes one hour each day and it costs $40 in expenses for the round trip. Using a work-eisure diagram, depict his labour supply choice, including his reservation wage. Analyze the impact of an increase in commuting costs on his participation and hours decision. Analyze the impact, first of an increase in commuting time from two to four hours per day, and, second, of an increase in driving expenses from $40 to $60 per round trip, keeing commuting time at two hours. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
A state funded report in Florida brings media attention to the wage gap between landscapers and childcare workers. Whereas childcare workers are largely female, landscapers are largely male. The state passes comparable worth legislation to bring this wage discrepancy into balance. The graph represents the market for childcare workers. Adjust the wage line to illustrate the impact an hourly wage requirement of $11.00/hour has on this market. Hourly wage ($) 54 32 no 15 14 13 12 11 10 9 8 6 LO 5 4 3 21 2 O 0 50 supply wage demand 100 150 200 250 300 350 400 450 500 Workers What impact did this legislation have on the level of employment of childcare workers? Employment decreases by 100, and the size of the surplus equals 250 childcare workers. Employment increases by 150, and the size of the surplus equals 250 childcare workers. O Employment decreases by 150, and the size of the shortage equals 250 childcare workers. O Employment increases by 100, and the size of the shortage equals 250…
In California, researchers found, it really matters where you live. Residents of Silicon Valley live more than four years longer than the average American, earn nearly double the income, and have nearly triple the number of graduate degrees. Residents of Central Valley live nearly a year less than average American, earn barely more than a poverty-line income, and nearly four in ten failed to graduate from high school. Explain how the labor markets of California translate education differences into earnings differences. Education determines the skill of the worker. High-skilled workers _______ compared to low-skilled workers, so the ______ high-skilled workers exceeds that for low-skilled workers. a. earn a higher wage rate; supply of b. earn a higher wage rate; demand for c. have a higher marginal product; demand for d. have a greater value of marginal product; demand for e. have a greater value of marginal product; supply of
what happens to hours of labor when the reservation wage rate increases? What happens to hours of labor when the reservation wage rate decreases? Graph it with an indifference curve, budget constraints, and reservation wage.
In general, different jobs pay different wages. One overarching reason is that different jobs have different characteristics, with wages serving to compensate for those different characteristics. Consider two virtually identical individuals, employed in the same industry and working in the same region. One of the individuals works in Occupation A, while the other works in Occupation B. Assume that the individual working in Occupation A earns a higher wage than the individual working in Occupation B. Describe four differences between Occupations A and B that could each help explain the different wages paid to the two workers.
After hiring the third emplyee, John was able to produce 110 units instead of 80 units without the third employee. The price of each unit is $10. What is the Marginal Revenue Product of the third employee. $800 $1100 $3000 $1900 Not Enough Information
the employee has worked. A typical case Luba works on commission and has a weekly pay period. One week, she was paid $150.00 in commission and worked 25 hours. The minimum wage applicable to Luba is $14.25 an hour. The minimum wage ($14.25) multiplied by the number of hours worked in the pay period (25) is $356.25. Luba is owed the difference between her commission pay ($150) and the required minimum wage ($356.25). Calculate: Luba's employer owes her $
Why does a worker allocate his or her time over the life cycle so as to work more hours in those periods when the wage is highest? Why does the worker not experience an income effect during those periods?
In the News: Sleep Rules Raise Trucking Costs The Federal Motor Carrier Safety Administration (FMCSA) now monitors the sleep hours and practices of long-haul truck drivers. As of July 1, 2013, the FMCSA insists that drivers: Drive no more than 11 hours a day. Work no more than 14 hours a day. Work no more than 70 hours a week. Take a 30-minute break in their first 8 hours of driving. Rest for 34 consecutive hours after completing a 70-hour week, including at least two nights between the hours of 1 and 5 a.m. According to FMCSA, the new sleep rules will reduce chronic fatigue and related crashes, saving 19 lives per year. But the trucking industry says the new rules are too costly and even dangerous. They force drivers to sleep when they're not tired and to drive when they are tired. They also force trucks onto the road at commute times. The $700 billion industry says shipping costs will rise 2 to 6 percent, upward of $2 billion. Source: Federal Motor Carier Safety Administration and…
Shawn's boss pays him $5/hr more than what other people in similar jobs make and because of this he works a lot harder. What is this an example of? menu costing efficiency wages opportunity costing flexible wages