Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can someone help me answer these questions? I don't even want to bother checking how my professor does it because the way she structures her

Can someone help me answer these questions? I don't even want to bother checking how my professor does it because the way she structures her answers is worse than a 5th grader.. Thank you!

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
3. 55 points. Your country has a cash safety net program, welfare that provides eligible families who don't work at all with an welfare benefit of G=1000, and then taxes away that income at a rate of 30%. Assume full time work is 2000 hours a year. a. 10 points. Label the X and Y axes on the graph below and draw the budget set with the welfare program. Place the following types of individuals on the budget set and draw their indifference curves. 1) individuals who don't work under the program, 2) who work but get some welfare, and 3) who don't get any welfare. Do this all for for a wage w = 2. b. 12 points. The dictator of your country decides this program is too generous, and allows people to buy goods like alcohol, cigarettes, and other non-necessary goods. He converts this program to one like the current US Food Stamp Program. The guarantee is the same, and the benefit reduction rate the same, but the benefit can only be used to purchase unprepared foods. Draw 2 graphs, one showing the tradeoff between food and other consumption under the old cash program and the second showing the tradeoff between food and other consumption under the new food stamp program. Do this for someone with the same wage and other characteristics as in a. Budget Set with Welfare Program With Welfare === No work, only welfare 3500 3000 {2000, 2800' Income (Y) N un o o 2000 1500 1000 == e e e e e e e e e e e e 0 250 500 750 1000 1250 1500 1750 2000 Hours Worked (H) Income (Y) 4500 4000 3500 3000 2500 2000 1500 1000 Budget Set with Welfare Program With Welfare No work, only welfare Indifference Curve (No Work) Indifference Curve (Partial Work) Indifference Curve (Full Work) 250 500 750 1000 1250 1500 Hours Worked (H) 1750 2000 Old Cash Program New Food Stamp Program 100 100 - Budget Line Budget Line (Food Stamps Part) --- Budget Line (Wages Part) 80 80 60 60 Food Food 40 40 20 20 0 0 20 40 60 80 100 20 40 60 80 100 Other Goods Other Goods

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics The Basics

Authors: Michael Mandel

2nd Edition

0073523186, 9780073523187

More Books

Students also viewed these Economics questions

Question

8. How can an interpreter influence the message?

Answered: 1 week ago