Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 18, Problem 1.1P
(a)
To determine
Identify the sources of income.
(a)
Expert Solution
Explanation of Solution
Economics Concept Introduction
Transfer payments: Transfer payments are payments made by the government to the people who do not contribute anything in the production process.
Unemployment compensation: Unemployment compensation is a transfer payment of government that pays cash benefits for a certain period of time to laid-off workers who have worked for a specified period of time.
(b)
To determine
Identify the sources of income.
(b)
Expert Solution
Explanation of Solution
Dividend from share of stock can be treated as the income earned form property.
Economics Concept Introduction
Property income: Property income is the income earned from the financial holdings and the real property.
(c)
To determine
Identify the sources of income.
(c)
Expert Solution
Explanation of Solution
Earing income in the form rent can be treated as the income earned form property.
Economics Concept Introduction
Property income: Property income is the income earned from the financial holdings and the real property.
(d)
To determine
Identify the sources of income.
(d)
Expert Solution
Explanation of Solution
Earing income in the form health insurance can be treated as the income earned form wages and salaries in the form of wage supplements.
Economics Concept Introduction
Income from wages and salaries: Income earned from wages and salaries are the portion of personal income.
(e)
To determine
Identify the sources of income.
(e)
Expert Solution
Explanation of Solution
Earing income as an administrative assistant can be treated as the income earned form wages and salaries in the form of wage supplements.
Economics Concept Introduction
Income from wages and salaries: Income earned from wages and salaries are the portion of personal income.
(f)
To determine
Identify the sources of income.
(f)
Expert Solution
Explanation of Solution
Disability payments received from the social security administration can be considered as the transfer payments.
Economics Concept Introduction
Transfer payments: Transfer payments are payments made by the government to the people who do not contribute anything in the production process.
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Students have asked these similar questions
In California, a welfare recipient is eligible for welfare benefits of $645. Benefits are reduced by 50
cents for every dollar of earnings. Consider Elizabeth, a resident of California, who can earn $10 per
hour.
a. If she works 10 hours, how much are her earnings, how much is her welfare benefit, and how
much is her income?
b. After Elizabeth works a certain number of hours, she does not receive any benefit at all. What is
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c. Use your answer to parts a and b to plot her budget constraint.
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Number 6
Chapter 18 Solutions
Principles of Economics (12th Edition)
Knowledge Booster
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