I'm not sure how to answer the last two questions. Suppose that the government introduces a welfare program in which any individual with an income of less than $42,350 per year receives a lump-sumtransfer payment of $2,000 from the government. Assume that, in the short run, there is no change in labor-supply behavior among the people inPerkopia.In the year 2010, the fraction of the population living below the poverty line after the introduction of the welfare program in Perkopia isAgain, suppose the government introduces a welfare program in which any individual with an income of less than $42,350 receives a lump-sumtransfer payment of $2,000 from the government. Tim, a resident of Perkopia who currently earns an income of $41,884, has the opportunity to workovertime and earn an additional $1,900 this year.Which of the following statements are correct? Check all that apply.Tim may accept the overtime if he feels that taking it will increase the chances of his receiving a significant promotion.The $2,000 in aid presents a disincentive for Tim to make more than $42,350 per year.Tim would gain more income by turning down the overtime than he would if he accepted the overtime. The following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within anincome group earns the same income, and the total annual income in the economy is $500,000,000. Suppose that in 2010, the poverty incomethreshold, or poverty line, is set at an annual income of $42,350 for an individual.Year2006201020162020Lowest Quintile Second Quintile3.03.43.85.0QuintileLowestSecondMiddleFourthHighestShare of Total Income in Perkopia(Percent)Middle Quintile Fourth Quintile Highest QuintileThe data in the table suggest that there was a decrease in8.69.49.711.0Share of Income in 2010(Percent)3.49.414.622.450.214.014.615.215.5Total Income(Dollars)21.922.417,000,00047,000,00073,000,000112,000,000251,000,00022.925.0Complete the following table to help you determine the poverty line in Perkopia in 2010. To do this, begin by determining the total income of allindividuals in each quintile, using the fact that total annual income in the economy is $500,000,000. Next, determine the income of an individual ineach quintile by dividing the total income of that quintile by the number of people in that quintile. (Hint: Recall that Perkopia has a population of10,000 people.) Finally, determine whether the individual income for each quintile falls below the poverty income threshold, or poverty line, of$42,350.income inequality from 2006 to 2020.Individual Income52.5(Dollars)50.248.443.58,50023,50036,50056,000125,500Below Poverty Line?YesYesYesNoNoUsing the information in the previous table, the fraction of the total population living below the poverty line of $42,350 in Perkopia in 2010 is60%

Poverty: Poverty is an economic situation where a person is not capable of purchasing their daily…

Suppose that the government introduces a welfare program in which any individual with an income of less than $42,350 per year receives a lump-sum transfer payment of $2,000 from the government. Assume that, in the short run, there is no change in labor-supply behavior among the people in Perkopia. In the year 2010, the fraction of the population living below the poverty line after the introduction of the welfare program in Perkopia is Again, suppose the government introduces a welfare program in which any individual with an income of less than $42,350 receives a lump-sum transfer payment of $2,000 from the government. Tim, a resident of Perkopia who currently earns an income of $41,884, has the opportunity to work overtime and earn an additional $1,900 this year. Which of the following statements are correct? Check all that apply.

Suppose that the government introduces a welfare program in which any individual with an income of less than $42,350 per year receives a lump-sum transfer payment of $2,000 from the government. Assume that, in the short run, there is no change in labor-supply behavior among the people in Perkopia. In the year 2010, the fraction of the population living below the poverty line after the introduction of the welfare program in Perkopia is Again, suppose the government introduces a welfare program in which any individual with an income of less than $42,350 receives a lump-sum transfer payment of $2,000 from the government. Tim, a resident of Perkopia who currently earns an income of $41,884, has the opportunity to work overtime and earn an additional $1,900 this year. Which of the following statements are correct? Check all that apply.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter15: Poverty And Economic Inequality

Section: Chapter Questions

Problem 6SCQ: A group 0f 10 people have the following annual incomes:...

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