Top Posters
Since Sunday
5
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
BrendanOO7 BrendanOO7
wrote...
Go to Answer
Posts: 260
Rep: 0 0
6 years ago
A welfare program offers $4000 of benefits to those not working. For those working, it reduces benefits dollar for dollar until there are no benefits to be paid. The program is then modified so that for every dollar earned, benefits are only reduced by 50 cents. Mr. X earned $6000 under the old program. What will be the effect of the new program (noting that he is in the range to receive benefits)?
A) Both his income and substitution effect will decrease his desired hours of work.
B) Both his income and substitution effect will increase his desired hours of work.
C) His income effect will increase his desired hours of work, but his substitution effect will decrease his desired hours of work.
D) His income effect will decrease his desired hours of work, but his substitution effect will increase his desired hours of work.
Textbook 
Modern Labor Economics: Theory and Public Policy

Modern Labor Economics: Theory and Public Policy


Edition: 12th
Authors:
Read 51 times
1 Reply
Replies
Answer verified by a subject expert
ShadiasShadias
wrote...
#1
Top Poster
Posts: 608
Rep: 21 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

BrendanOO7 Author
wrote...

6 years ago
Good timing, thanks!
kobbhy
wrote...

Yesterday
Thanks
carston
wrote...

2 hours ago
Thanks
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1213 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 343
  
 341
  
 473
Your Opinion
How often do you eat-out per week?
Votes: 79
Previous poll results: Which 'study break' activity do you find most distracting?