Explain why a lump-sum government transfer can entice some workers to stop working (and entices no one to start working) while the earned income tax credit can entice some people who otherwise would not work to start working (and entices no one to stop working).

Explain why a lump-sum government transfer can entice some workers to stop working (and entices no one to start working) while the earned income tax credit can entice some people who otherwise would not work to start working (and entices no one to stop working).

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter12: The Public Sector

Section: Chapter Questions

Problem 14SQ

See similar textbooks

Related questions

Q: Some part of income inequality is likely to be the result of discrimination. But other factors…

A: Discrimination does result in income inequality but there are other factors also which results in…

Q: What is the goal of Equal Employment Opportunity? What are the ways to protect employees from unfair…

A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…

Q: The increase in marriages in which both spouses have a high paying job is given as explanations for…

A: United states being the largest economy in the world and with a very high per capita income has been…

Q: Assessed classes of immigrants are those who are: evaluated on the basis of their likely…

A: Immigration to another nation is a legal process, there are various forms of papers that must be…

Q: Immanuel Kant’s principle, called the categorical imperative, requires that everyone be treated as:…

A: The Categorical Imperative is meant to provide us with a way of assessing rational behavior and…

Q: Which of the following statements about race and inequality is correct? Group of answer choices The…

A: Introduction: According to the United States Census Bureau, non-Hispanic whites or Non-Latino whites…

Q: In the Fourteenth Amendment of the federal Constitution, the Equal Protection Clause provides that…

A: Affirmative Actions basically means a policy or practice favoring individuals belonging to groups…

Q: modern labour economics Data showing that 20% of all geographic moves are to an area in which the…

A: Migration is described as the movement of individuals from 1 place to another and this can be…

Q: Suppose a person earns $500 a month. A social assistance program with a grant amount of $1,000 a…

A: The term ClawBack means a special provision set between the employer and the employee where any…

Q: Describe how the firm decides whether to offer a safe working environment or a risky environment.

A: Ste 1- The safety of the workplace is very necessary for each employee of the firm where they can…

Q: Which among the following is an example of involuntary migration? a. Africans migrated because of…

A: Migration refers to the movement of people from one place to another with the intention of settling…

Q: The poverty line is based on cash income, which means it does not take into account government…

A: The poverty line is the minimum level of income required to meet the minimum living conditions in an…

Q: When conducting a needs assessment, you can look at demographic data within your organization. You…

A: While there can be gigantic differentiation between individual odds and ends shops, these stores are…

Q: Which of the following statements are true? Which are false? Explain why the false statements are…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Which of the following is not linked to wage inequality for Latinas and African American women? Rise…

A: Wage inequality describes how wages are distributed unequally across a population.Measures of pay…

Q: The Marginal Productivity theory of income determination implies everyone gets paid for the value…

A: Wage levels are designed to reflect the marginal revenue product of labour, MRP, which is the…

Q: Is poverty an unfortunate circumstance or a character defect?

A: Poverty is the state of living where an individual is deprived of basic living standards.…

Q: In the United States, since the 1970s: the poorest 20% of wage earners has gained a greater share of…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Suppose a worker with an annual discount rate of 10 percent currently resides in Pennsylvania and is…

Q: What is the difference between an agricultural wage worker and a peasant? What about a (fixed rent)…

A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If you…

Q: Human Capital Theory

A: Human capital theory emphasis on the development or up-skilling of the of the human capital. This in…

Q: Mark Zuckerberg of Facebook and Elon Musk of Space X have taken risks to build to their businesses…

A: Tax is the compulsory payment made by private and institutions to the government without having any…

Q: Write your ideason what should be done to halt the inequality among people experienced in each…

A: Inequality: It refers to how financial factors are distributed among people in a gathering, among…

Q: Suppose high-wage workers are more likely than low-wage workers to move to a new state for a better…

A: a) If skilled workers migrate to another states for better job opportunities they get high wages in…

Q: Identify the role of government agencies to enforce equal employment opportunity

A: Until the US Civil Rights Act was passed in 1964, segregation in the workplace was an common norm.

Q: You are considering taking an econometric software course: R or STATA. The tuition is $1000, and…

A: There are two alternative options for the student - => To buy any course now without waiting…

Q: How does a human capital investment in education increase your lifetime earning

A: Human capital investment in education helps in increasing the lifetime earning.

Q: 1. _______________involves active efforts to improve the job opportunities or outcomes of minority…

A: 1. _____Affirmative action__________involves active efforts to improve the job opportunities or…

Q: what could the federal government have done to alleviate the human suffering of the Great…

A: The great depression began in the U.S. in October 1929. The stock market had crashed and the economy…

Q: Suppose a worker with an annual discount rate of 8 percent currently resides in Chicago and is…

A: Given, Discount Rate = 8% Earnings in Chicago = $40,000 Earnings in Phoenix = $43,500

Q: Differentiate equality from equity

A: The dictionary meaning of equality is the state of being equal especially with regard to status,…

Q: Full employment is related to how well a person’s skills match his or her job. True or false

A: We are going to discuss the definition of full employment in an economy to answer this question.

Q: When lenders decide to discrimination against certain groups and refuse to give them loans to buy…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: How weak reserch culture in society affects Lack of job and career options? Explain in detail.

A: The people who will always wanted to be employed may go after various career options. The interest…

Question

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

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

Presently, there is a minimum and maximum social security benefit paid to retirees. Between these two bounds, a retiree’s benefit level depends on how much she contributed to the system over her work life. Suppose Social Security was changed so that everyone aged 65 or older was paid $12,000 per year regardless of how much she earned over her working life or whether she continued to work after the age of 65. How would this likely affect hours worked of retirees?
Suppose a worker with an annual discount rate of 8 percent currently resides in Chicago and is deciding whether to remain there or to move to Phoenix. There are three work periods left in the life cycle. If the worker remains in Chicago, he will earn $40,000 in each of the three periods. If the worker moves to Phoenix, he will earn $43,500 in each of the three periods. What is the highest cost of migration that a worker is willing to incur and still make the move?
Senator Deal proposes to offer a choice to future retirees: if you retire before age 70, the benefits are calculated on the last 35 years of income; if you retire at age 73, however, you receive benefits calculated on only the last 15 years of income. Which option will high-income workers likely choose? Low-income workers? Why?
Brad Edwards is earning $36,000 a year in a city located in the Midwest. He is interviewing for a position in a city with a cost of living 18 percent higher than where he currently lives. What is the minimum salary Brad would need at his new job to maintain the same standard of living?
Suppose the government introduced a child benefit equal to $7000 per year. For every dollar earned by the family, the benefit amount is reduced by 7 cents. At what level of earnings will the family no longer receive a child benefit?
Is poverty an unfortunate circumstance or a character defect?
Some people feel that income distribution (equality) should be achieved. Do you agree or disagree with this concept? How would you feel if someone did more work and made more money but then gave you a portion of the profits? How would you feel if you had to give some of your paycheck to someone that did not work as hard. What if the instruction decided to give all the students a grade of "B" including those that did "A" work as well as those that gave "C" effort?
What would be the impact of rational self-interest on your decision whether to attend college fulltime or enter full-time work force?
Why is severance of employment relevant to youth? Explain and provide details
Debbie is about to choose a career path. She has narrowed her options to two alternatives. She can become either a marine biologist or a concert pianist. Debbie lives two periods. In the first, she gets an education. In the second, she works in the labor market. If Debbie becomes a marine biologist, she will spend $15,000 on education in the first period and earn $472,000 in the second period. If she becomes a concert pianist, she will spend $40,000 on education in the first period and then earn $500,000 in the second period.a. Suppose Debbie can lend and borrow money at a 5 percent rate of interest between the two periods. Which career will she pursue? What if she can lend and borrow money at a 15 percent rate of interest? Will she choose a different option? Why?b. Suppose musical conservatories raise their tuition so that it now costs Debbie $60,000 to become a concert pianist. What career will Debbie pursue if the interest rate is 5 percent?
Suppose a worker with an annual discount rate of 10 percent currently resides in Pennsylvania and is deciding whether to remain there or to move to Illinois. There are three work periods left in the life cycle. If the worker remains in Pennsylvania, he will earn $20,000 per year in each of the three periods. If the worker moves to Illinois, he will earn $22,000 in each of the three periods. What is the highest cost of migration that a worker is willing to incur and still make the move?
All people who have equivalent formal education earn similar incomes." Do you agree or disagree with this statement? Explain your position?