. Suppose under TANF your state provides an income guarantee of $7,000 and a benefit reduction...
. Suppose under TANF your state provides an income guarantee of $7,000 and a benefit reduction rate of 60%. The typical recipient can work up to 2,000 hours per year at a wage of $8 per hour. What would be the effective take-home wage rate if the recipient works 50 hours per year?
Homework Answers
When you work for 50 hours per year, you earn $8*50 = $400. Your earnings are supplemented by $7,000 income guarantee with reduction in benefits at 60%. This implies that you will receive a total of 7000*40% = $2800. This makes your earnings worth $3200 for working 50 hours. Hence effective take home wage rate is 3200/50 = $64 per hour.
Add Answer to:
. Suppose under TANF your state provides an income guarantee of
$7,000 and a benefit reduction...
1.8. Consider an income guarantee program with an income guarantee of $5,000 and a benefit reduction...
1.8. Consider an income guarantee program with an income guarantee of $5,000 and a benefit reduction rate of 40%. A person can work up to 2,000 hours per year at $10 per hour. a. Draw the person’s budget constraint with the income guarantee. b. Suppose that the income guarantee rises to $7,500 but with a 60% reduction rate. Draw the new budget constraint. c. Which of these two income guarantee programs is more likely to discourage work? Explain. d. Draw...
The TANF program was created in 1996 by a major overhaul of the cash welfare system...
The TANF program was created in 1996 by a major overhaul of the cash welfare system in the United States. The cash welfare system distributes money from taxpayers to low-income families. TANF provides a monthly support check to families with incomes below a threshold level that is set by each state (read section 2.2.). Suppose that a single mother called Lisa, with two children and no other source of income, receive a monthly check for $425 from TANF. Assume further...
True/False/Uncertain questions from a prior year's final exam. 1. Suppose a welfare program has a benefit guarantee...
True/False/Uncertain questions from a prior year's final exam. 1. Suppose a welfare program has a benefit guarantee of $10,000 and a benefit reduction rate of 50%. True/False/Uncertain: Increasing the benefit reduction rate would increase hours worked of low-wage workers. 2. Consider two countries, X and Y. These two countries have a similar income distribution, but the elasticity of taxable income is greater in X. True/False/Uncertain: Country X should set a higher income tax rate
True/False/Uncertain questions from a prior year's...
Suppose that Anna can work up to 2,000 hours per year at a wage of $15.00...
Suppose that Anna can work up to 2,000 hours per year at a wage of $15.00 per hour, that he has no other source of income, and there is not yet TANF program in place. Draw her budget constraint (name it Figure 3.1). Explain how you constructed the graph. What is the slope of the budget constraint? Explain the slope. (b) Now, let’s introduce a TANF program. Consider an income guarantee program with an income guarantee of $4,000 and a...
HI, I need a help with the part (b) of this question. I have the solution...
HI, I need a help with the part (b) of this question. I have the solution guide book but it won't help me. I want a detail explanation. Here is the problem: 1. Consider 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. Alice, Bob, Calvin, and Deborah work for 100, 333 ⅓, 400, and 600 hours, respectively,...
Suppose a single parent can work up to 16 hours per day at a wage rate...
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 assure a minimum level of income for low-income families, such as AFDC (see Problem 2). One of the problems with AFDC is that benefits were reduced by $ 1 for every dollar earned. An alternative income maintenance program is Temporary Assistance for Needy Families (TANF), which also offers a no-work benefit...
A councilman has presented a detailed proposal for a universal basic income. Under his proposal, every...
A councilman has presented a detailed proposal for a universal basic income. Under his proposal, every adult citizen in the US would receive an annual payment of $15,000 and every citizen under 18 would receive $3,500. These benefits would be financed through a set of taxes. The councilman’s proposal is to finance the basic income through a 25% tax on wage and salary income. a. draw an income leisure diagram for a family with two adults and two children. Assume...
2) If an income maintenance program entails a $3,000 basic benefit and a reduction rate of...
2) If an income maintenance program entails a $3,000 basic benefit and a reduction rate of 0.30 what will be the subsidy received by a family that earns $2,000 per year? What is the family’s total income? What is the break-even income under this program?
Crash Airlines provides the following fringe benefits to its employees. For each benefit, state whether or not an accoun...
Crash Airlines provides the following fringe benefits to its employees. For each benefit, state whether or not an accounting entry would be needed at the end of the year to accrue the cost of the benefit. State your justification for each answer. 1.Each employee earns two days of paid sick leave for each 160 hours he or she works for the company. 2.Each employee is also permitted to fly free of charge on any Crash Airlines flight that is not...
Problem 1 Suppose a single parent has the following utility function: U-20 in C+10 In L....
Problem 1 Suppose a single parent has the following utility function: U-20 in C+10 In L. The single parent is eligible for the TANF program which has the following characteristics: Benefit guarantee $1000, benefit reduction rate 50%. If the single parent works, her wage Is $20 an hour. She can spend her time (2000 hours) working or having leisure. What is the budget constraint of the single parent who is eligible for the TANF? C=1000-50%(2000-L)*20 O C=(2000-L)*20-1000 C=(2000-L)*20+1000-50%"(2000-L) 20 O...
True/False/Uncertain questions from a prior year's final exam. 1. Suppose a welfare program has a benefit guarantee of $10,000 and a benefit reduction rate of 50%. True/False/Uncertain: Increasing the benefit reduction rate would increase hours worked of low-wage workers. 2. Consider two countries, X and Y. These two countries have a similar income distribution, but the elasticity of taxable income is greater in X. True/False/Uncertain: Country X should set a higher income tax rate
True/False/Uncertain questions from a prior year's...
Problem 1 Suppose a single parent has the following utility function: U-20 in C+10 In L. The single parent is eligible for the TANF program which has the following characteristics: Benefit guarantee $1000, benefit reduction rate 50%. If the single parent works, her wage Is $20 an hour. She can spend her time (2000 hours) working or having leisure. What is the budget constraint of the single parent who is eligible for the TANF? C=1000-50%(2000-L)*20 O C=(2000-L)*20-1000 C=(2000-L)*20+1000-50%"(2000-L) 20 O...
Most questions answered within 3 hours.
-
What are five tips in conducting knowledge assessment/literature
review research? Each of these tips needs to...
asked 26 minutes ago -
Antigen presenting cells link innate and adaptive immune
responses. In the theoretical scenario where phagosomes cannot...
asked 31 minutes ago -
Dealing with conflict, in my opinion, is a skill and an art. I
believe that those...
asked 1 hour ago -
6. A long straight wire with circular cross section and radius
1.5 cm carries a 1.2...
asked 1 hour ago -
Deacon Corporation has provided the following financial data
from its balance sheet and income statement:
Year...
asked 2 hours ago -
List and discuss at least three variables from everyday life for
which you expect the variable ...
asked 2 hours ago -
A high-pass filter consists of a 1.60 μF capacitor in series
with a 125 Ω resistor....
asked 2 hours ago -
A newly developed artificial intelligence has trouble
distinguishing hand-written numbers from hand-written alphabets.
There are pictures...
asked 2 hours ago -
The carbonate ion CO3 2- has multiple resonance structures.
a. Draw them and assign the hybridization...
asked 2 hours ago -
In doing an allocation for a basket purchase
Use the individual costs and the total market...
asked 2 hours ago -
what were the social political and economic causes and impacts of
the late 19th century urban...
asked 2 hours ago -
if the magnitude of a velocity vector is 10m/s and it
makes an angle of 45...
asked 2 hours ago