Chapter 15: Q 19. (page 377)
Who are the near-poor?
Short Answer
Near-poor refers to those people who earn incomes just above the poverty line.
Chapter 15: Q 19. (page 377)
Who are the near-poor?
Near-poor refers to those people who earn incomes just above the poverty line.
All the tools & learning materials you need for study success - in one app.
Get started for freeWhat is measured on the two axes of a Lorenz
curve?
What is the safety net?
What goods and services would you include in an
estimate of the basic necessities for a family of four?
Who is included in the top income quintile?
Jonathon is a single father with one child. He can work as a server for \(6 per hour for up to 1,500 hours per
year. He is eligible for welfare, and so if he does not earn any income, he will receive a total of \)10,000 per year.
He can work and still receive government benefits, but for every \(1 of income, his welfare stipend is \)1 less. Create
a table similar to Table 15.4 that shows Jonathan’s options. Use four columns, the first showing number of hours
to work, the second showing his earnings from work, the third showing the government benefits he will receive,
and the fourth column showing his total income (earnings + government support). Sketch a labor-leisure diagram of
Jonathan’s opportunity set with and without government support.
What do you think about this solution?
We value your feedback to improve our textbook solutions.