The executive action is estimated to increase Supplemental Nutrition Assistance Program (SNAP) benefits, otherwise known as food stamps, for the 12 million families who rely on the aid most. The order would increase weekly benefits for a family of four by 15 or 20 per cent. An increase of benefits awarded through a school meals program for low-income families could also give a family of three children more than $100 in extra benefits every two

The executive action is estimated to increase Supplemental Nutrition Assistance Program (SNAP) benefits, otherwise known as food stamps, for the 12 million families who rely on the aid most. The order would increase weekly benefits for a family of four by 15 or 20 per cent. An increase of benefits awarded through a school meals program for low-income families could also give a family of three children more than $100 in extra benefits every two

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter33: Income, Income Distribution, And Poverty

Section: Chapter Questions

Problem 10E

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“The executive action is estimated to increase Supplemental Nutrition Assistance Program (SNAP) benefits, otherwise known as food stamps, for the 12 million families who rely on the aid most. The order would increase weekly benefits for a family of four by 15 or 20 per cent. An increase of benefits awarded through a school meals program for low-income families could also give a family of three children more than $100 in extra benefits every two months” (Hall, 2021). What problems do you foresee if these benefits were not available to these low-income families and migrants within the U.S.?
The graph below shows the budget constraint between income and leisure for an individual. The individual has a total of 4000 hours to divide between working and leisure for the entire year. The maximum an individual could make by working all 4000 hours is $20,000. For every hour spent in leisure, one less hour is spent working and vice versa. Suppose that, as illustrated in the graph, a government antipoverty program guarantees the individual $10, 000 in income per year. As the current government support is too low to help individuals out of poverty, the government has decided to increase the government support to $22, 000 per year. The individual is no longer motivated to work any hours as it is not possible for him/her to make more income than the guaranteed government support. Move the Government Support line to illustrate this outcome. Provide your answer below: 30000 25000 (0, 20000). 20000 15000- Government Support ($10000) 10000 5000 (4000, Q) 2000 4000 3000 Leisure (Hours) 1000…
Shen, who is currently unemployed, is a participant in four welfare programs that offer daily benefits of $10 each to people with no earned income. Each program then curtails its benefits by 50 cents for every dollar of income a recipient earns. Shen's identical twin brother, Sean, is enrolled in an experimental negative income tax program that gives him $40/day in benefits and then taxes him at the rate of 50 percent on each dollar of earned income. Now suppose Shen is offered a job that pays $4/hr, the same wage his brother earns. a. Draw the budget constraint for each twin. Instructions: To earn full credit for this graph you must plot all required points for each curve. 1. Use the line tool (Shen's budget constraint, plot 3 points) to draw the Shen's budget constraint. 2. Use the line tool (Sean's budget constraint, plot 2 points) to draw the Sean's budget constraint. After tax-income ($/day) 98 84 70 56 42 28 14 0 2 4 6 8 10 12 14 16 18 20 22 24 26 Leisure (hrs/day) Tools Shen's…
The graph below shows the budget constraint between income and leisure for an individual. For every hour spent in leisure, one less hour is spent working and vice versa. Move the budget constraint to illustrate the trade off that exists when the individual can earn $25,000 if he/she works 4,000 hours, assuming the individual does not qualify for government support. Assume that the individual only has 4,000 hours to distribute between work and leisure. Provide your answer below: 35000 %24 30000 25000 20000 15000- (0, 14000) 10000 -5000- | (2200, 0) 1000 2000 3000 4000 5000 Leisure (Hours) Income ($)
The graph below shows the budget constraint between income and leisure for an individual. For every hour spent in leisure, one less hour is spent working and vice versa. Suppose that the individual starts making more than the guaranteed annual government support level when he/she works more than 2000 hours in a given year (and, in essence, spends 500 hours or less in leisure activities). Move the Government Support line to represent the level of government support for which the above is true. Provide your answer below: 30000 25000 (0, 25000) 20000- 15000- 10000- 5000- Government SUpport ($3000) (2500, 0) 2000 Leisure (Hours) 1000 3000 Income ($)
President Clinton has seized the cigarette excise tax as an expedient and politically correct means of increaseing federal revenue. In 1994 the federal government took in $12 billion from the present 24-cents-per-pack tax. If the tax were quadrupled to $1 a pack, Clinton figures tax revenues would increase by more than $50 billion over three years. Those added revenues would help finance the heath care reforms the president so dearly wants. Professor Gary Becker, a Nobel Prize-winning economist at the University of Chicago,says Clinton math is wrong. The White House assumed that cigarettes sales would drop by 4 percent for every 10 percent increase in prices, not the full adjustment of smokers' behavior. Over a three-year period, cigarette consumption is likely to decline by 8 percent for every 10 percent increase in price-twice as much as Clinton assumed.As a result,the $1-a-pack tax will bring in much less revenue than President Clinton projected. According to Professor Becker, by…
Which of the following is a true statement about Supplemental Nutrition Assistance Program (SNAP)? Select the correct answer below: The amount of food aid a household is eligible to receive from SNAP is set as a fixed amount by each state. SNAP contributes to the poverty trap. SNAP is a state and locally funded program. SNAP does not set any work requirements or time limits for receiving program benefits.
It is ten days until the scheduled vote on the proposed minimum wage hike. The leader of the Senate Majority party calls you to offer a compromise. She has read your proposed alternative bill that would provide significant tax breaks on income from tips and gratuities. She tells you she is willing to propose your bill instead, and can get at least six others to do the same. In return, she wants you to drop your objections to the current immigration reform bill being considered, that would impose legal restrictions to prevent individuals from working without documentation. The immigration reform bill is not in the best interests of restaurant owners, but it is not as bad as a higher minimum wage. What do you tell the Senator? The immigration reform bill is not in the best interests of restaurant owners, but it is not as bad as a higher minimum wage. Do you agree to the compromise? It is ten days until the scheduled vote on the proposed minimum wage hike. The leader of the…
Assistance 12. The U.S. government spends over $74 billion on its Supplemental Nutr Program (SNAP) to provide millions of Americans with the means to purchase food. Beneficiaries use an Electronic Benefits Transfer (EBT) card to transfer their govern- ment benefits from a federal account to a retailer account. The funds on an EBT card cannot be sold for cash or used to purchase nonfood items. The average SNAP benefit is about $284 per month. Suppose that, in the absence of SNAP, the average consumer must divide $600 in monthly income between food and "all other goods" such that the following budget constraint holds: $600 = $12A + $4F, where A is the quantity of "all other goods" and F is the quantity of food purchased. Using the vertical axis for "all other goods," draw the consumer's budget line in the absence of SNAP. What is the market rate of substitution between food and "all other goods"? On the same graph, show how SNAP alters the average consumer's budget line. Would this…
Jones, without a job or job prospects, has been on social assistance for the past four months. Social assistance pays a basic benefit of $600 a month with a benefit reduction rate of 75 percent for earned income. Her welfare benefit is given as B = 600 - 0.75E, where E represents monthly earnings. Jones has just been offered a part-time job working 5 hours a day, 5 days a week, earning an hourly wage of $11. Sketch a budget constraint for Jones given the social assistance scheme in place and the wage rate available for part time work. How much income would she earn if she accepted the job? Would Jones still be on social assistance if she took the job? Draw the budget constraint.
mmolat 6. A central goal of the Affordable Care Act (ACA) is to significantly reduce the number of uninsured by providing a continuum of affordable coverage options through Medicaid and the Health Insurance Marketplaces. The ACA expands Medicaid coverage for most low-income adults to 138% of the federal poverty level. Following the June 2012 Supreme Court decision, states face a decision about whether to adopt the Medicaid expansion. On or before January 1, 2019, 31 states and the District of Columbia expanded Medicaid eligibility. To analyze the effect of the Medicaid expansion on private health insurance coverage, using a state-level data drawn from the 2010-18 American Community Surveys, the following difference-in-differences model was estimated controlling for all year and state effects, as well as covariates for poor, child and senior, by using the de-meaned approach. Variable name Description expansion priv_hi senior child poor st year 1 for the expansion states after Medicaid…
Bluth’s Bananas is considering expanding its retail operations for its one-of-a-kind frozen banana stands on Jones Beach, which is 10 kilometers long. Bluth’s Bananas estimates that the typical day has 2,000 visitors to the beach, spread uniformly, and that each will demand a single frozen banana provided the price plus any disutility of traveling to a stand does not exceed $6. To visit a stand a beach goer incurs a disutility of $0.50 for each 1/4 kilometer they have to walk to reach a stand. Each Bluth Banana costs $0.75 to make and each stand requires an operating fee to be paid to the city of $50 per day. Determine the equilibrium number of stands Bluth’s Bananas should operate on the beach given it is not in competition with any other firm. Determine the profit maximizing price for the bananas and calculate the profit realized by BB in equilibrium.