Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 31.6, Problem 2ST
To determine
Effects of money transfer of special interest legislation.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Under the most recent tax reform act, Congress doubled the exemption for the estate tax while retaining the gift tax rules. Proponents of the estate tax says it allows the wealthy to create multi - generational wealth which does not benefit the country economically. They also argue that it creates family empires. Opponents of the estate tax claim that paying the estate tax causes many families to have to sell family businesses in order to pay the estate tax and that in most cases taxes have already been paid on the accumulated wealth that is being passed on. Describe your position on the estate tax and why it should be maintained, increased, decreased or eliminated according to your beliefs.
Please write a brief dissertation (200 - 400 words) stating your opinion on Thomas Piketty's
proposals. He proposes the implementation of a global progressive tax on capital to mitigate
wealth inequality.
9) Since the Social Security system began in 1935, the
number of individuals in the workforce per retiree
(ratio of workers supporting those receiving retirement
benefits) has
A) stayed roughly the same.
B) continually increased.
C) continually decreased.
D) risen and declined with different generations.
Chapter 31 Solutions
Economics (MindTap Course List)
Knowledge Booster
Similar questions
- 5. As a hypothetical case, suppose the typical individual has a utility function expressed as U = (C – 50)*(L – 10), where C is consumption and L is leisure time. The current wage, w, is $5 and she has a weekly return on assets of V = $100. She only has 60 hours per week to divide between work hours, h, and Leisure. A number of countries and communities are considering implementing a "Guaranteed Basic Income" as policy. A "Guaranteed Basic Income" is a government payment of a fixed a amount of money for each person Suppose the country of interest sets the weekly payment at $100. i) Using the Neo-classical labor supply with reference to specific numerical values discuss the consequences of the above "Guaranteed Basic Income". ii) Using the basic Supply and Demand for labor approach discuss the consequences of the "Guaranteed Basic Income" policy on the overall labor market. iii) Using a feedback approach, from the Neo-classical labor supply to market equilibrium and back to labor…arrow_forwardPlease answer 1, 2, and 3! Susan is a single mother with three children. She can earn $8 per hour and works up to 2,000 hours per year. However, if she does not earn any income at all, she will receive government benefits totaling $16,000 per year. For every $1 of income she earns, her level of government support will be reduced by $1. The table below is patterned after Table 15.8 from the text. Number of Work Hours Earnings from Work Government Benefits Total Income 2000 $16,000 $0 $16,000 1600 $16,000 1200 $16,000 800 $16,000 400 $3200 $12,800 $16,000 0 $0 $16,000 $16,000 Complete the table. Is this program an example of a poverty trap? Explain your answer. If this program is an example of a poverty trap, how can this program be altered to avoid this problem?arrow_forwardAs a hypothetical case, suppose the typical individual has a utility function expressed as U = (C – 50)*(L – 10), where C is consumption and L is leisure time. The current wage, w,is $5 and she has a weekly return on assets of V0020= $100. She only has 60 hours per week to divide between work hours, h, and Leisure. A number of countries and communities are considering implementing a “Guaranteed Basic Income” as policy. A “Guaranteed Basic Income” is a government payment of a fixed a amount of money for each personSuppose the country of interest sets the weekly payment at $100. Using the Neo-classical labor supply with reference to specific numerical values discuss the consequences of the above “Guaranteed Basic Income”. Using the basic Supply and Demand for labor approach discuss the consequences of the “Guaranteed Basic Income” policy on the overall labor market. 3.Using a feedback approach, from the Neo-classical labor supply to market equilibrium and back to labor supply,…arrow_forward
- Explain your answer comprehensively about the question stated below: Suppose Congress were to mandate that all employers had to offer their employees a life insurance policy worth at least $50,000. Use Economic Theory and concepts, both positively and normatively, to analyze the effects of this mandate on employee well-being. How this mandate will influence or affect poverty, wages, labor migration, and economic growth.arrow_forwardConsider an income guarantee program with an income guarantee of $3,000 and a benefit reduction rate of 50%. A person can work up to 2,000 hours per year at $6 per hour. Mia, Lucas, Thomas, and Deborah work for 100, 333 %, 400, and 600 hours, respectively, under this program. The government is considering altering the program to improve work incentives. Its proposal has two pieces. First, it will lower the guarantee to $2.000. Second, it will not reduce benefits for the first $3,000 earned by the workers. After this, it will reduce benefits at a reduction rate of 50%. a. Draw the budget constraint facing any worker under the original program. Explain. b. Draw the budget constraint facing any worker under the proposed new program. Explain. I c. Which of the four workers do you expect to work more under the new program? Who do you expect to work less? Are there any workers for whom vou cannot tell if they will work more or less? Explain.arrow_forwardAssume a society consists of two economic groups: one group is rich and the other group is poor. Suppose that 50 percent of the population is rich while the other 50 percent of the population is poor. Consider two scenarios. Scenario A: The rich have $80,000 each, while the poor have $5,000 each. Scenario B: The rich have $11,000 each, while the poor have $900 each. If you only care about average income and not about equity, you would prefer ▼ Scenario A Scenario B , which has an average income of $........?? (Enter your response to the nearest dollar.) Now suppose that you only care about equity or inequality. In this case, you would prefer ▼ Scenario B Scenario A , which has a rich-to-poor ratio of .........?? (Round your response to one decimal place.) Finally, suppose you only care about living standards. In this case, you would prefer ▼ Scenario A Scenario B because it has lower poverty.arrow_forward
- Take a country like Sweden where tax levels are very high at 55% of GDP, but where PDI is also high at 70% of GDP. These statements seem contradictory. Calculate the size of social transfers, as a % of GDParrow_forwardMark Zuckerberg of Facebook and Elon Musk of Space X have taken risks to build to their businesses and been successful at it. The fundamental premise for their success mostly hinges on the ownership of private property and free market forces. For billionaires like them who have made their wealth mostly based on their own effort and perseverance, would it be fair to impose high income tax on them to redistribute their wealth to help the poor?arrow_forwardExplain why a lump-sum government transfer can entice some workers to stop working (and entices no one to start working) while the earned income tax credit can entice some people who otherwise would not work to start working (and entices no one to stop working).arrow_forward
- rdcdn.com/blackboard.learn.xythos.prod/5a25b62cdb9cf/5497575?X-Blackboard-Expiration=1631804400000&X-Bla 2/ 4 100% Directions: Write below whether each factor will increase or decrease demand for the market listed, what determinant of demand caused the increase and decrease and show the demand curve shift on the graph. Determinant and Change Increase or Decrease: Graph Scenario 9. Market: Paper towels this month Scenario: Prices of paper towels are expected to rise in the future. TRIBE: 10. Market: Cheese this month Increase or Decrease: P. Scenario: Prices are expected to fall next TRIBE: month. 11. Market: Pancake market Increase or Decrease: Scenario: Prices of syrup increase. D Q TRIBE: 12. Market: Ketchup market Increase or Decrease: Scenario: Prices of hot dogs decrease TRIBE: D 13. Market: Almond milk Increase or Decrease: P Scenario: Price of dairy milk inereases TRIBE: 14. Market: Almond butter Increase or Decrease: Scenario: Price of peanut butter decreases TRIBE: 15. Market:…arrow_forwardKeep in mind that you don’t have to die to have to pay inheritance and gift taxes under the current tax code. Anyone who gives a family member more than $11.5 million (as of 2020 indexed annually for inflation) is subject to the tax. Is that amount too high or too low, and why?arrow_forwardAssume 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)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning