A person's social security benefit is based upon a. How much she/he earned their entire life b. Their average earning for their three highest years C. Their average earnings for the highest five years d. Their average earnings for their highest thirty-five years Social security taxes are levied on a. all one's wages b. the first $50,000 of their wages half of their wages C. d. None of their wages (their employer pays this tax, not the employee) e. None of the above The analysts' recommendation summary on Yahoo finance for a particular stock just went from 1.7 to 6.7 a. This means that the stock has been upgraded b. This means the stock has been downgraded This means the stock has been de-listed d. This cannot happen C.

A person's social security benefit is based upon a. How much she/he earned their entire life b. Their average earning for their three highest years C. Their average earnings for the highest five years d. Their average earnings for their highest thirty-five years Social security taxes are levied on a. all one's wages b. the first $50,000 of their wages half of their wages C. d. None of their wages (their employer pays this tax, not the employee) e. None of the above The analysts' recommendation summary on Yahoo finance for a particular stock just went from 1.7 to 6.7 a. This means that the stock has been upgraded b. This means the stock has been downgraded This means the stock has been de-listed d. This cannot happen C.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter20: Poverty, Inequality, And Discrimination

Section: Chapter Questions

Problem 5DQ

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Similar questions

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. Create a table, patterned after Table 15.3. The first column should show Susans choices of how many hours to work per year, up to 2,000 home. The second column should show her earnings from work. The third column should show her level of government support, given her earnings. The final column should show her total income, combining earnings and government support.
The social security tax is 6.2 on employees income earned below 113,000. Is this tax progressive, regressive or proportional?
Explain how a country may experience greater equality in the distribution of income, yet still experience high rates of poverty. Hint: Look at the Clear It Up 'How do governments measure poverty in low-income countries?' and compare to Table 15.5.
Jonathan is a single father with one child. He can work as a server for $6 per hour for up to 1,500 hours per year. He is eligible for welfare, and so if he does not earn any income, he will receive a total of 10,000 per year. He can work and still receive government benefits, but for every 1 of income, his welfare stipend is 1 less. Create a table similar to Table 15.4 that shows Jonathans options. Use four columns, the first showing number of hours to work, the second showing his earnings from work, the third showing the government benefits he will receive, and the fourth column showing his total income (earnings + government support). Sketch a labor-leisure diagram of Jonathans opportunity set with and without government support.
Why would means-tested transfer payments (such as food stamps, in which benefits are reduced as income rises) act like an income tax facing recipients?
Using two demand and supply diagrams, one for the low-wage labor market and one for the high-wage labor market, explain how information technology can increase income inequality if it is a complement to high-income workers like salespeople and managers, but a substitute for low-come workers like file clerks and telephone receptionists.
A group 0f 10 people have the following annual incomes: 24,000,18,000,50,000,100,000,12,000,36,000,80,000,10,000,24,000,16,000. Calculate the share of total income that each quintile receives from this income distribution. Do the top and bottom quintiles in this distribution have a greater or larger share of total income than the top and bottom quintiles of the U.S. income distribution?
To reduce income inequality, should the marginal tax rates on the top 1 be increased?
Say that the government is considering a ban on smoking in restaurants in Tobaccoville. There are 1 million people living there, and each would benefit by 200 from this smoking ban. However, there are two large tobacco companies in Tobaccoville and the ban would cost them $5 million each. What are the proposed policys total costs and benefits? Do you think it will pass?
Question 1 Assume no Washington income tax, and Washington has a $4M grant to spend. Zoe Wu tells the mayor that a means-tested program would allow the poor to get more money. She suggests that benefits should be redunced by $10 for each $100 in workers’ pre-tax income. Suppose the guarantee rate is G. How much benefit would each group get at their original income (working 40 weeks) in terms of G? 2 2. With the $4M grant, how large can G be? How much benefit does each group get? What is the maximum income in the phase-out region? Draw the benefit schedule with labels. Suppose the government could identify workers’ type and sent them money equal to your answer in part (b), regardless of their labor supply choice. (a) What is the percentage change in workers’ wealth, the dollar value of their time plus unearned income? (b) How many weeks per year would each type work using the elasticity of η = −0.1? Compare your answer to 4(d). Explain why they are similar or…
1. How does the government make an equitable/impartial/fair distribution of income? Give an example and why
a) Why do you think we should use taxation as a redistribution tool in a country? b) Discuss whether kind payments and cash payments is better regarding indivual’s utility when helping the poor?