Welfare Benefits Problem
Suppose the welfare benefits received are defined by the equation below:
Benefits = 15,000 - 0.75 * Earnings
1. What is the income guarantee in this program? _15000_
2. What is the tax rate in this program? _0.75%_
3. What is the
Problem: Earned Income Tax Credit (EITC)
I. Marriage Incentives and Disincentives.
A. Consider two people each with $7,000 in earnings and 1 kid. If they remain single, their
earnings are subsidized and their combined earned income tax credit is 2(2389) =
3. All of the above.
Beckers modeled discrimination as a personal prejudice, or taste, against associating with a
particular group. He also believed employers implementing discrimination would be driven out
of business- without any external parties (like