public_ps2_sp09

public_ps2_sp09 - NAME_ PAM 204- Problem Set #2 Complete...

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NAME_________________________ PAM 204- Problem Set #2 Complete the problem set on these three sheets of paper. Circle your answers to the multiple choice questions. Note that there are five problems. PS #2 is out of 10 points. #1) Consider a welfare program that has an earnings disregard component. The daily guaranteed income is $50, the benefit reduction rate is 75%, and the wage is $10 per hour. If a single mother works for three hours a day , what is her daily income? (1 point) 2. Suppose that an earnings disregard program is in place. Suppose that a single mother is initially working six hours a day, earning $9 per hour, and receiving welfare. Suppose now that the benefit reduction rate is adjusted such that a single mother who is working six hours a day at $9 per hour would not receive welfare benefits. Which statement is true? (1 point) A) The single mother might work more hours, fewer hours, or the same amount of hours. B)
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This note was uploaded on 09/13/2009 for the course PAM 2040 taught by Professor Lewis during the Spring '07 term at Cornell.

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public_ps2_sp09 - NAME_ PAM 204- Problem Set #2 Complete...

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