Food Stamp Programa. We have two goods; x1 indicating foods and x2 indicating non-food items. Consider thefollowing six Food Stamp programs designed for six types of family based on their daily income.For each of the Food Stamp programs, if the maximum no. of food stamp is 50, draw the originalbudget line (before Food Stamp program is introduced) and the budget line after theimplementation of Food Stamp program.Program No. Daily Income (Tk.)Food Stamp priceMarket price of alloted foods10 - 5000Tk. 0Tk. 20025001 - 10000Tk. 20Tk. 20010001 - 15000Tk. 50Tk. 200415000 - 20000Tk. 100Tk. 200520000 - 25000Tk. 150Tk. 20025000 +Tk. 200Tk. 2003.6

To construct budget constraint we take: Horizontal axis = Each Dollar spent on food item Vertical…

Food Stamp Program a. We have two goods; x1 indicating foods and x2 indicating non-food items. Consider the following six Food Stamp programs designed for six types of family based on their daily incom For each of the Food Stamp programs, if the maximum no. of food stamp is 50, draw the origin budget line (before Food Stamp program is introduced) and the budget line after the implementation of Food Stamp program. Program No. Daily Income (Tk.) Food Stamp price Market price of alloted foods 1 0 - 5000 Tk. 0 Tk. 200 2 5001 - 10000 Tk. 20 Tk. 200 3 10001 - 15000 Tk. 50 Tk. 200 4 15000 - 20000 Tk. 100 Tk. 200 5 20000 - 25000 Tk. 150 Tk. 200 25000 + Tk. 200 Tk. 200

Food Stamp Program a. We have two goods; x1 indicating foods and x2 indicating non-food items. Consider the following six Food Stamp programs designed for six types of family based on their daily incom For each of the Food Stamp programs, if the maximum no. of food stamp is 50, draw the origin budget line (before Food Stamp program is introduced) and the budget line after the implementation of Food Stamp program. Program No. Daily Income (Tk.) Food Stamp price Market price of alloted foods 1 0 - 5000 Tk. 0 Tk. 200 2 5001 - 10000 Tk. 20 Tk. 200 3 10001 - 15000 Tk. 50 Tk. 200 4 15000 - 20000 Tk. 100 Tk. 200 5 20000 - 25000 Tk. 150 Tk. 200 25000 + Tk. 200 Tk. 200

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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E1 Suppose the Federal Government issues $100 worth of food stamps to everyone in your city. These stamps are coupons that can be exchanged for $100 worth of food at the grocery store and they can be used only by the person to whom they are issued. Draw your budgetline between “food’ and “all other goods” both before and after the food stamps are issued. Assume the price of food = price of “all other goods” = $1.00 and the individual’s initial income is $200.
Suppose there are two goods, co ee (C) and tea (T). The consump-tion set is R2+, so both goods can be consumed in arbitrary non-negativequantities.Abdul owns 2000 grams of co ee but does not own any tea. He hasno other wealth. The price of co ee is pC = 2 (in Dhs per gram) andthe price of tea is pT > 0 (in Dhs per gram). Abdul can sell co ee toearn income, which he can then use to buy tea or co ee. He can alsothrow co ee away (at no cost).Abdul's preferences can be represented by the utility functionu(c; t) = -(800 - c)2 - (800 - t)2;where c is the quantity of co ee (in grams) and t is the quantity of tea(in grams).(a) In separate diagrams, illustrate (i) the map of Abdul's indi erencecurves, (ii) Abdul's constraint set.(b) How much co ee and tea does Abdul decide to consume when (i)pT = 2, (ii) pT = 3, and (iii) pT = 4?(c) Illustrate Abdul's demand for co ee as a function of the price of tea (pT > 0) in an appropriate diagram.
Because Income depends on work effort and work effort depends on nutrition, suppose the relationship between income (Y) and total food availability (F) in a poor household is given by: Y = 10F + 20F2 – 0.6F3 a) If food availability in a two-person household is 20, would it be “rational” to share the food? Explain. b) If food availability in a two-person household is 30, would it be “rational” to share the food? Explain.
A worker earns £15 pounds an hour and chooses to work six hours a day. The worker has noother source of income. For the question below, assume that the worker has “standard” Cobb-Douglas preferences. When considering wage changes, assume that the “income effect”outweighs the “substitution effect”. (a) Write down the worker’s budget constraint and then represent the worker’schoice in a suitably labelled graph. (b) The government gives the worker £80, but taxes the worker’s wage, such thattheir take-home wage is £10. Model this policy in a suitably labelled graph. Isthe worker better off (in terms of utility) after this policy? Note –there are arange of correct answers for the worker’s new hours/income. Choose one thatis consistent with the information given in the question.
Mark can work up to 80 hours each week at a pre-tax hourly wage of $20 but faces a constant 20 percent tax on his earnings. Thus, Mark maximizes his utility by choosing to work 50 hours per week. The government proposes a negative income tax whereby everyone is given $300 per week and anyone can supplement their income further by working. To pay for the negative income tax, tax on earnings will be increased to 50 percent. On a single graph, draw Mark's original budget line and his budget line under the negative income tax. Show that Mark will work fewer hours if the negative income tax is implemented Will Mark's utility be greater under the negative income tax? Discuss your answer.
Explain the definitions assumed by the table and cite specific figures in the table to explain the middle-income trap. (b) Explain the causes of the middle-income trap according to Arias and Wen.
Eren’s two main hobbies are taking vacations overseas (V) and eating expensive meals (M). His utility function is given as: U(V,M) = V^2MLast year, the average price of taking a vacation overseas was US$200 and the average price of an expensive meal is $50. However, due to supply problems in Onions, the average price of an expensive meal rose to $75. The average price of a vacation did not change. His income, which is $1500, did not change. Suppose that the Department of Welfare wants to know how much should be given to Eren to offset his change un utility due to the price increase of an expensive meal. Calculate the compensative variation (CV).
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. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
One proposal for reforming the welfare system is to create a negative income tax. Under the negative income tax, each person is entitled to a grant of G dollars permonth. For every dollar the person earns, the grant is reduced by t dollars. a. Suppose G = 200 and t = 0.40. Consider an individual whose hourly wage = $10. There are 30 days in a month, so the total allotment of T = 720. Sketch the budgetconstraint before and after the introduction of the negative income tax. b. Would people work more or less with the implementation of this system? c. What if t = 100%? Explain!
Need Step by Step answer: How to draft on Excel. Because Income depends on work effort and work effort depends on nutrition, suppose the relationship between income (Y) and total food availability (F) in a poor household is given by: Y = 10F + 20F2 – 0.6F3 a) If food availability in a two-person household is 20, would it be “rational” to share the food? Explain. b) If food availability in a two-person household is 30, would it be “rational” to share the food? Explain.
Consider an employee who does not receive employer-based health insurance and must divide her $10,000 per week in after-tax income between health insurance and "other goods." Draw this worker's opportunity set if the price of health insurance is $2,000 per week and the price of "other goods" is $1,000 per week. On the same graph, illustrate how the opportunity set would change if the employer agreed to give this employee $2,000 worth of health insurance per week (under current tax laws, this form of compensation is nontaxable). Would this employee be better or worse off if, instead of the health insurance, the employer gave her a $2,000 per week raise that was taxable at a rate of 25 percent? Explain.
C= 250+ 0.8Y I= 150 G=300 TR= 100 NX=100 t= 0.25 Q) Find the equilibrium level of income Q) suppose, Beacuse of the current COVID 19 situation C falls to 50, MPS falls to. 05, I falls to 10 G falls to 100 and NX falls to 10.how much TR should the government increase to have the samd Level of equilibrium income as in part i)?