Basic Income

List some reasons why household income differ. Which factor is the most important

A typical resident of the country of Collegia consumes a simple basket of goods, consisting of only life's essentials: soda, pizza, and Advil. A year's basket contains 900 sodas, 120 pizzas, and 60 bottles of Advil. The price of these goods in each of the past 8 years is given in the following table: Soda Pizza Advil 2005 $1.00 $ 8.00 $10.00 2006 $1.50 $ 8.00 $10.00 2007 $1.50 $ 8.50 $11.00 2008 $2.00 $ 8.50 $11.50 2009 $2.50 $ 9.00 $11.00 2010 $2.50 $ 9.00 $10.00 2011 $2.00 $10.00 $12.00 2012 $3.00 $10.00 $13.00 Complete the following table by calculating the CPI for each year using 2008 as the base year. (Round your responses to one decimal place.) 2005 2006 2007 2008 2009 2010 2011 2012 CPI Complete the following table by calculating the rate of inflation for each year from the previous year, starting with 2006. (Round your responses to one decimal place and use a minus sign if necessary.) 2006 2007 2008 2009 2010 2011 2012 Inflation % % % % Rate

Personal income PI is Select one: a. All income received by households b. All income earned by households minus personal taxes c. All income received by households minus personal taxes d. None of the answers are correct e. All income earned by households

Barry can work 3120 hours in a (non-leap) year. He has the opportunity to work for $20 per hour. With the income that he earns from working he purchases cans of soup at a price of $1 per can. He has no other income. Barry must pay taxes on the income that he earns. The first $15,000 that he earns is exempt from taxation. However, on every dollar that he earns above $15,000, he faces a marginal tax rate of 15% (so for every $1 that he earns above $15,000 he must pay the government $.15). a) Putting hours of leisure on the x-axis and cans of soup on the y-axis illustrate Barry’s budget set. Be sure to label (put the coordinates) on both intercepts and the “kink” point on the budget line. b) Barry is a typical American worker who works 2000 hours per year. What are Barry’s total tax payments? Illustrate an indifference curve through his best bundle in your diagram for part (a). The President’s Tax Reform Panel proposes to change the tax laws. First, the government should lower the level…

Identify some reasons why household incomes differ. Which factors are the most important?

6. This question is based on the following table. Household Income Average number of car per household $0 -- $29,999 1.5 30,000--- 49,999 1.7 50,000 --- 74,999 1.9 75,000--- 99,999 2.4 100,000- 149,999 2.8 150,000 and over 3.2 The relationship between household income and average number of car per household is: a. Fluctuating. O b. Terminal. Oc. Direct. O d. Indirect. Oe. Inverse.

Which of the following is a leakage from the circular flow of income a. Mr X bought an Indian made television for Rs. 15,000. b. Mr Y bought a second hand T.V from his friend Z. c. Mr A imported a brand new Ferrari car from Germany for Rs 10 lakh. d. Mr B paid Rs 10,000 to his secretary as salary

5) What is the difference between wealth and income? 7) What is the main reason that the distribution of measured wealth is more unequal than the distribution of income?

Kwabena earns 15 GHS per hour for up to 40 hours of work each week. He is paid 30 GHS per hour for every hour in excess of 40. Kwabena faces a 20 percent tax rate. Kwabena receives 80 GHS from the government as part of the Livelihood Empowerment Against Poverty (LEAP) program which is tax-free. There are 110 (non-sleeping) hours in the week. Graph Kwabena’s weekly budget line.

Identify the earners of the following income. 1. Rent 2. Salaries 3. Taxes 4. Dividends 5. Tips 6. Surcharge 7. Commission 8. Honorarium 9. Fine 10. Stipend

What is the circular flow of income

Question 3 of 15 Data on the distribution of income for the United States show that from 1970 through 2014, the share of income earned by the bottom quintile and the share earned by the top quintile O fell; fell rose; rose O fell; rose O rose; fell

If receipts of factor income from the rest of the world exceed payments of factor incometo the rest of the world, thenA) GDP is greater than GNP.B) GDP equals GNP.C) GNP equals NNP.D) GNP is greater than GDP

Evaluate the impact of age, and geographic location on personal income. (Contextualize in Philippine setting)

The part of income which is not consumed is called ________

Which of the following would cause the level of income to change by the greatest amount?   a. An increase in defense spending of $20 billion.   b. An increase in social security payments of $20 billion.   c. A reduction in personal income taxes of $20 billion.   d. The changes suggested above have equal impacts on the level of income.

What do we mean by market income? Example...

Final income 45° Original Income Figure 6: Welfare policy diagram Towards the right of Figure 6 are two circular red markers with a line between them that you can use to draw a line on Figure 6. You can move the markers with the mouse by clicking on them and dragging. Alternatively, you can tab to each marker and then use the keyboard arrow keys. In Figure 6 the solid blue line shows how a tax and benefit system translates original income into final income. Position the red markers, one on each vertical axis, on Figure 6 to show the effect of: A change that raises the final incomes of the poorest households, but doesn't raise total spending. #t h

Final income 45° Original Income Figure 6: Welfare policy diagram Towards the right of Figure 6 are two circular red markers with a line between them that you can use to draw a line on Figure 6. You can move the markers with the mouse by clicking on them and dragging. Alternatively, you can tab to each marker and then use the keyboard arrow keys. In Figure 6 the solid blue line shows how a tax and benefit system translates original income into final income. Position the red markers, one on each vertical axis, on Figure 6 to show the effect of: A change that raises the final incomes of the poorest households, but doesn't raise total spending.

Q.1 In the table below, you are given data on income distribution within the UK for the year 2012-2013. Population clumped together based income ($) Percentage share of total income ($) Percentage share of disposable income (after taxes and transfers) ($) Bottom most quintile Second quintile Middle quintile Fourth quintile Top most quintile 3 8 14 15 17 25 22 49 38 a) Using the information given in the table above and choosing the appropriate diagram, you are required to plot two Lorenz curves that will show the distribution of income before and after intervention by the government in the form of taxes and benefits. Label them as LC1 and LC2 respectively. b) Now calculate the Gini coefficients for both cases and comment on the nature of intervention (or type of tax system) by the government.

Which one of the following is NOT a possible relationship between income and spending Select one: a. Income equals the level of spending b. Spending is higher than income c. None is a relationship d. Income is higher than spending

Raka has 80 hours per week that she can allocate to work or leisure. Her job pays a wage rate of $20 per hour, but Raka is being taxed on her income in the following way. On the first $400 that she makes, she pays no tax. That is, for the first 20 hours she works, her net wage—what she takes home after taxes—is $20 per hour. On all income above $400, Raka pays a 75% tax. That is, for all hours above the first 20 hours, her net wage rate is only $5 per hour. Her indifference curves conform to the usual assumptions about consumer preferences. Raka’s optimal choice is to work 30 hours.Draw Raka’s time-allocation budget line for a typical week.

The following question has 4 parts (a.-d.), parts b. to d. will be revealed after submitting your answer by hitting "Verify" on the preceding sections. Suppose an economy is composed of 10 individuals. The following table shows their annual income in thousands of dollars. Individual Individual 1 Individual 2 Individual 3 Individual 4 Individual 5 Individual 6 Individual 7 Individual 8 Individual 9 Individual 10 Income 46 80 96 33 74 54 48 28 83 10

Under what situation is it appropriate to regard husband's income as non-labor income for a married woman?