Answered: what happens to fixed income when per…

what happens to fixed income when per capita income increases ? What implications does this have on those on a fixed income (either those who are retired or those working minimum wage jobs ?

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter17: Inflation

Section: Chapter Questions

Problem 5SQP

See similar textbooks

Related questions

Q: n, calculate the NPV (Net present value) of the

A: NPV is the net present value. NPV of the project is the present value of net cashflows. Net…

Q: what is net economic position?

A: Net economic position refers to the net financial position of the company where the overall monetary…

Q: al domestic expenditure E, number of people living in poverty P, and of household members in a…

A: *Answer: Introduction: A rate of change is the relationship between a change in an output quantity…

Q: Explain Net present value with the formula.

A: Net Present Value Net present value basically refers to the difference between the current worth of…

Q: Income and wealth Income is the flow of value generated from assets over a period of time and wealth…

A: Poverty refers to a situation where there is no access to resources.

Q: Find out NDP from given data.GNP = 1000Net factor income from abroad = -100 Net indirect of fixed…

A: NDP FORMULA: 1) GNP - Net factor income abroad = GDP 2) GDP - Depreciation = NDP Given…

Q: A negative net export (import is greater than import) can be offset by a positive net factor income.…

A: When talking about international trade, balance of payment account is used to make a record of…

Q: A one-pound bag of cookies cost 30 cents in 1922. If the CPI in 1922 was 17 and the CPI in 2014 is…

A: Price of cookies in 2014 = Price in 1922 x (CPI in 2014 / CPI in 1922) = $0.30 x (230 / 17) = $4.06

Q: Define the term Net Income?

A: The monetary benefit or reward earned by an individual or business by producing goods or services,…

Q: We always hear about individual (and contractors) working "under the table", does this income really…

A: Black market refers to the market where commodities are traded illegally. Generally, the black…

Q: Suppose you had a choice between living in the United States in 1900 with an income of $991,000 per…

A: Inflation is a component that caters to problematic situations in an economy wherein the price…

Q: explain the impact of a low interest rate on gross domestic product(not less than a page)

A: We can determine the impact of low interest rate on gross domestic product by taking IS-LM model. IS…

Q: In 1995, when the consumer price index was 152.38, women earned a median income of $12,130 per year.…

A: Given - Consumer Price Index in 2015 = 236.99, Consumer Price Index in 1995 = 152.38, Median Income…

Q: Suppose that in 2020, a typical U.S. student attending a state-supported college bought 10 textbooks…

A: Given Price of textbook ($) price of 25 credit hours course ($) 2020 90 $380 per credit hour…

Q: Evaluate as accurately as you can how each of the following individuals would be affected by…

A: The unanticipated inflation refers to the increase in the general price level of the economy. The…

Q: Please draw a change that raises the final incomes of the poorest households, but doesn't raise…

A: To raise the final income of the poorest without changing the spending, the new policy line must cut…

Q: What is the NPV?

A: Economics studies the production, distribution and allocation of resources. Engineering economics…

Q: If the price of your cell phone contract increases from R 700 to R 900 over a period of one year and…

A: "Nominal income does not reflect for changes in the price levels and real income reflect for the…

Q: Raka has 80 hours per week that she can allocate to work or leisure. Her job pays a wage rate of $20…

A: The microeconomic theory of utility maximisation can also be applied in determination of optimal…

Q: discuss possible variations in purchasing power due to price and income changes

A: The consumer or the individual would result in consuming various amounts of goods and services given…

Q: What happens to fixed income when per capita incomes increases

A: The measure that depicts total income being earned in an economy by the total population of the…

Q: How is NAIRU supposed to be a "better" definition than "Natural Rate"? Are either of these good…

A: In an economy, the terms Nairu and natural rate of unemployment are used to explain market condition…

Q: Studies indicate that married men on average earn more income than unmarried men of the same age and…

A: Correlation/interrelationship does not surely bring causation/causality. Marriage & income…

Q: Briefly describe what the "baby boom" affect will be in relation to payroll taxes and indicate what…

A: A tax is a fee levied by the government to fund its expenditure. A payroll tax is paid equally by…

Q: Describe a situation, either a government policy situation, an economic problem, or a private sector…

A: CPI would be more appropriate in situation which involves a typical consumer. Let's take the…

Q: If income is held constant and the wage rate increases, the desired hours of work will A.…

A: A. increase A rise in the wage means, there would be a higher income and it would lead to a more…

Q: One way that the positive correlation between education and higher earnings can be interpreted is…

A: It is true that there exist a positive correlation between education and higher earning.

Q: Explain why changes in the cost of living for any particular individual or family may differ from…

A: Cost of living of an individual is the based on the amount of money they ear as income for the work…

Q: Calculate : a. GDI b. GNI c. NNI d. NI e. Personal income f. Disposable income

A: Income from employment & self employment = 25000 Income from rent, dividend & interest =…

Q: Mia Denton was an accountant in 1943 and earned $21,000 that year. Her son was an accountant too and…

A: Index number shows the changes in variable in different period of time such as change in price year…

Q: What would be the value of APC if consumption is $2000 and income is $5000

A: (Q) What would be the value of APC if consumption is $2000 and income is $5000?

Q: What are the two approaches to determine the equilibrium level of income in an economy?

A: According to the given question In simple words we can say that equilibrium level income is…

Q: If RGDP as measured by the Product Market is shown to be $14T, explain what you would expect RGDP as…

A: GDP is the sum of the final market value of all the final goods and services produced within the…

Q: What are the effects of unemployment on income distribution?

A: Unemployment has bad effects on income distribution. Due to unemployment,some people have very high…

Q: When the earned income of poor people increases to be equal to disposable income the transfer from…

A: The amount of money that a person or household has available for spending or saving after income…

Q: What is meant by a “market basket rate”?

A: A permanent bundle of goods and services that are purchased and sold in the market throughout the…

Q: Describe what is Inflation-free interest rate?

A: Interest rate refers to percentage of investment that the lender receives for letting the borrower…

Q: As the baby boom generation retires, the ratio of retirees to workers will increase noticeably. How…

A: The coming retirement of the greatest generation in United states history, the 76 million people…

Q: Identify the part of the personal income which is actually available for consumption O a.…

A: Income is the money received by a person or a company in exchange for labor, the production of a…

Q: Define the Nominal Interest Rates?

A: The interest rate refers to the payment rate that is charged by a lender on a borrower for using the…

Q: Why is the CPI a better indicator of inflation for households then the GDP deflator? Is inflation…

A: The consumer price index measures the average change in the price index of the basket of goods and…

Q: The value of land in Manhattan was around $150 billion in 2008. Imagine that it is 1626 and you are…

A: Present value of $150 billion in 1626 is calculated as follows.…

Q: Calculate the value of income, If consumption is $4000 and APC is 0.13

A: The given information is as follows:- Consumption = $4000 APC = 0.13 We have to calculate income

Q: dozen eggs cost $1.03 in December 1980 and $1.60 in December 2018. The average wage for workers in…

A: Percentage change ={(final value - initial value) /initial value}×100%

Question

what happens to fixed income when per capita income increases ? What implications does this have on those on a fixed income (either those who are retired or those working minimum wage jobs ?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What happens to fixed income when per capita incomes increases?
When the earned income of poor people increases to be equal to disposable income the transfer from the government is zero. is it (true or false) ?
Why are the services of house wives not included in national income?
Identify the part of the personal income which is actually available for consumption a.Consumption income b.Disposable income c.National income d.Taxable incom
Find net factor income from abroad if national income is $20,000 million and NDPFC is $13000 million
Which of the following is included in personalincome but not in national income?a. Compensation for workersb. Proprietors' incomec. Corporate profitsd. Social Security payments
State the three main components of the domestic factor income. Fast
Which type of income is composed of both the labour income and capital income of those person who provide both labour and capital services One word
International data show a positive correlation between income per person and the health of the population. Explain how higher income might cause better health outcomes. Explain how better health outcomes might cause higher income.
If the price of your cell phone contract increases from R 700 to R 900 over a period of one year and your income rises from R15 000 to R15 500 during that same period, your nominal income has… a) Increased, and your real income has increased. b) Increased, but your real income has decreased. c) Decreased, and your real income has decreased. d) Increased, but your real income has remained the same.
Calculate the value of net national income (NNI) at factor cost.
Is the equilibrium level of income also the full employment level of income ?