Which of the following is true regarding means-tested welfare programs with benefit reduction rates less than 100% compared to benefit reduction rates of 100% a.100% benefit reduction rates lead to the highest level of hours worked. b.less than 100% reduction rates lead to the highest level of hours worked. c.it is uncertain which program leads to the highest level of hours worked.

Which of the following is true regarding means-tested welfare programs with benefit reduction rates less than 100% compared to benefit reduction rates of 100% a.100% benefit reduction rates lead to the highest level of hours worked. b.less than 100% reduction rates lead to the highest level of hours worked. c.it is uncertain which program leads to the highest level of hours worked.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter12: Income Distribution, Poverty, And Discrimination

Section: Chapter Questions

Problem 11SQP

See similar textbooks

Similar questions

Poverty Trap 7. The American Poverty Trap is a phrase used to describe the tendency for individuals below the poverty line to remain there due to the structure of America's safety-net income stabilization programs. 8. The issue is that federal and state benefits decline as a worker goes from being unemployed to becoming fully employed. As earned income increases, the amount of benefits fall. 9. Thus, the marginal benefit of working is increased income, but the marginal cost includes declining benefits, and a loss of leisure time. 10. Federal and state programs are designed so that as the worker nears the poverty line, the increase in income is matched by a decline in benefits. 11. Thus, the worker gains very little by working more! This structure is actually a disincentive to work. 12. What would be a better solution? End all poverty programs? Provide all citizens a poverty level income stipend? What do you think? What have you been told is the way to avoid being trapped in poverty? D…
1. A government economist, Mollie Orshanky, first calculated this in 1963 by multiplying the cost of a very minimal diet by 3, as a 1955 government study had determined that the typical American family spent 1/3 of its income on food. Group of answer choices a. episodic poverty b. popularity index c. welfare line d. poverty line
Which statement is correct regarding income guarantee programs? a-Preferences are not relevant in evaluating the costs of income guarantee programs. b-Workers generally work more with income guarantee programs with less than 100% reduction rates. c-Workers generally prefer income guarantee programs with 100% reduction rates. d-There is no benefit reduction rate guaranteed to maximize hours worked.
The largest single program in the U.S. welfare state is: a. Food stamp program b. Temporary Aid Needy Families (TANF) c. Earned Income Tax Credit (EITC) d. Social Security
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 Income $18,000 $20,000 $18,000 500 $4,000 $16,000 1,000 $8,000 $14,000 $22,000 1,500 $12,000 $12,000 $24,000 2,000 $16,000 $10,000 $26,000 2,500 $20,000 $8,000 $28,000 Select the correct answer below: O $0 O $2, 000 $4, 000 O $18, 000
Number 6
Please correct answer and don't use hand rating
In the government of a country's budget the finance minister proposed to raise the tax on cigarettes. He also proposed to increase income tax on individuals earning more than $100,000 per annum. What possible welfare objective can you think of from these proposals?
What makes the Earned Income Tax Credit (EITC) different from other poverty-fighting programs? The amount of the credit is doubled if the head of household is attending college. The tax credit is phased out gradually, rather than at a specific income cutoff point. The amount of the credit is not determined by the number of dependent children in the household. The EITC doesn't require the recipient to pay a minimum amount of income tax in order to receive the credit. It creates less of an incentive to work than other programs.
None
In social welfare programs, there is no way to change either the benefit reduction rate or the benefit guarantee to simultaneously achieve all three goals of encouraging work, redistributing more income and lowering costs. What is this dilemma called?
Being able to work with and understand percentages and ratios is important in many different careers. Consider each of the following situations that require work with percentages or ratios. a. Some government funding is related to the number of people living in poverty in a particular area. The 2010 population of Caswell County, NC, was 23,719 and 21.7% of the people were living in poverty. (Source: quickfacts. census.gov/qfd/states/37/37033.html) How many people were living in poverty in Caswell County, NC, in 2010? b. Wisconsin farmers received an average price of $17.60 per 100 pounds for their milk in April 2012, down $1.60 from April 2011. By what percentage did the average price of milk decrease between April 2011 and April 2012? (Source: www.nass.usda.gov/Statistics_by_State/Wisconsin/Publications/Dairy/mkallpri.pdf) c. The Centers for Disease Control estimates that 1 in 6 people in the United States suffer food poisoning in any given year. At the beginning of 2012, the…