Housing policy: Housing subsidies vs. Cash offer

A low income household has a monthly income of 900, and is qualified to receive certain welfare from government in housing.

This household has the following utility function and faces the following market information:

U = X.Y where X is the housing consumption (sq.) while Y represents all other goods; Price of X (housing per square foot) is $0.5, and price of Y (all other goods) is normalized to be $1. Hint: MRS = Y/X

1.1. What will be the consumption bundle for this household when no subsides or welfare is offered? (hint: utility maximization given the budget constrain)

1.2. What will be the consumption bundle if this household receives a cash offer of 300 per month from government?

1.3. Instead of receiving cash offer, they are subsidized by a housing voucher program, which specifies their out-of-pocket cost for housing is $270 per month. To keep this household equally happy as in (1.2 receiving cash offer),

a. What will be their consumption bundle?

b. How much is the subsidy amount from government?

c. Compare to the cash offer, which program is more cost effective from tax payer’s perspective?

1. Why does the fact that world governments will be willing to start taking serious and powerful measures to confront the problem of global warming, within the next few years, seem unrealistic?

There is a single line in Towards the End of Poverty that states, “Take a bow, capitalism.” Why should “capitalism” take a bow in your opinion? Please support your answer.

Why are property rights the key for economic progress? Please support your answer.

What are the monetary policies in place at the start of the selected time period in relation to their effects on macroeconomic issues in 2000-2010?

1. Suppose stock market crashes. What kind of fiscal policy should the government use in the situation? Please draw AD-AS diagram illustrating this policy change. Indicate the starting equilibrium, as well as the effect of stock market crash and then subsequent use of fiscal policy.

1.

a. What are the motives for bank consolidations (mergers and acquisitions)?

b. Suppose Bank A buys Bank B and makes its subsidiary. Would shareholders of Bank A benefit from this acquisition? Does the answer depend on the motives for the purchase?

1: The primary cost of the Social Security program is the

A :Redistribution of income from younger to older workers.

B: Financial costs of administering the program.

C: Benefits paid.

D: Reduction in total output the program causes because of work disincentives.

2:Social insurance programs

A:Involve an income eligibility test.

B:Are a type of welfare program.

C:Are means-tested.

D: Are event-conditional.

3: A market failure exists when an imperfection in

A: Welfare programs prevents an optimal outcome.

B: The market mechanism prevents an optimal outcome.

C :Federal government policies prevents an optimal outcome.

D: State government policies prevents an optimal outcome.

4: The poverty gap is the

A: Difference between the income of a household in poverty and the average income.

B: Difference between the incomes of the richest and poorest households.

C: Percentage of families under the poverty level.

D: Shortfall between actual income and the poverty threshold.

5: Use the following formula to answer the indicated question: Welfare benefit = Maximum benefit - Wages A welfare system based on the welfare formula given

A: Will increase the number of people eligible for welfare.

B: Has an effective marginal tax rate of 50 percent for welfare recipients.

C: Will increase work incentives.

D: Will increase the risk of moral hazard.

6: The breakeven level of income is the

A: Level of income at which welfare eligibility ceases.

B: Amount of income a person must have to reach the poverty line.

C: Level of income at which an individual household begins to have some discretionary income.

D: Lowest level of income at which in-kind benefits are no longer necessary.

7: In-kind transfers include

A: Public housing and Medicare.

B: Social Security benefits and housing subsidies.

C: Medicaid and unemployment benefits.

D: Transfer payments and food stamps.

8: U.S. poverty is more about ________ deprivation than ________ deprivation.

A: absolute; significant

B: meaningful; mild

C: relative; absolute

D: insignificant; relative

9: Which of the following statements is true?

A: U.S. GDP per capita is five times larger than the world average.

B: The poorest nations of the world have average incomes of $5,000.

C: According to world standards, 12 percent of Americans are poor.

D: "Extreme poverty" refers to an income of less than $2 per day.

10: U.S. per capita GDP is roughly how much larger than the world average?

A: Four times as large.

B: Twice as large.

C: Three times as large.

D: Five times as large.

11: According to the World Bank, roughly 800 million people are classified as being in ________ poverty.

A: extreme

B: tremendous

C: severe

D: subsistence

12: According to the World Bank, ________ people are classified as being in severe poverty.

A:800 million

B:100,000 million

C:2.5 billion

D:500,000 million

13: The Millennium Poverty Goal is the United Nations' goal of reducing the global rate of extreme poverty to ________ percent by 2015.

A: 0

B: 10

C: 15

D: 5

14: Economic growth

A: Cannot be sustained over time.

B: Causes the production possibilities curve to shift inward.

C: Refers to an increase in output.

D: Means that capacity has decreased in the short run.

15: An increase in total output or real GDP is

A: The Millennium Poverty Goal.

B: The inequality trap.

C: Economic growth.

D: Productivity growth.

16: An increase in production possibilities is known as

A: Upward mobility.

B: Predictable growth.

C: Economic growth.

D: Factor expansion.

17: In the poorest nations, agriculture is likely to contribute as much as ________ percent to total output.

A: 30

B: 85

C: 10

D: 55

Investing

As you've read in your text, the overall percentage of U.S. citizens participating in a stock market either through individual holdings or through financial intermediaries such as mutual funds has declined since the 2008 recession. Prior to 2008, a greater percentage of Americans held stock market investments than do in 2018. This is an interesting characteristic, given the following factors:

1. Investing in the market through savings plans, 401k or 403b accounts, individual IRAs, or similar retirement plans has never been easier given the amount of information available to any individual. Individuals can invest small amounts such as $20 and benefit from dollar-cost averaging through automatic deposits and electronic transactions such as payroll deductions.
2. While a vast majority of Americans will be dependent on Social Security as their primary source for retirement income, the message that relying solely on SS for retirement continues to be broadcast by media outlets such as the AARP.
3. Since 2008, the markets have rebounded significantly from their 2008 lows.
4. Basic principles of investing are easily located on the internet, from a variety of sources. For example, see the "Index Card" resource posted in Week 5, which is a short list of fundamental investing principles.

For this discussion post, you are to state a position and present an argument related to the above state of investing by U.S. citizens today. Why has the overall percentage of Americans invested in the market decreased in the last decade? And, subsequently, what can be done about this? In your argument, which is to be supported by both textbook and outside research, delve into one or more of the primary concepts presented in this week's readings. These include the various stock market indexes, international markets, the role of the mutual fund industry, active versus passive investing, in addition to multiple other concepts.  

2. A night-club owner has both the student (S) and non-student (NS) customers. The demand for drinks by a typical student is QS = 18 - 3P. The demand for drinks by a typical non-student customer is QNS = 10 – 2P. There are equal number of students and non-students. The marginal cost of each drink is $2. If the club owner could easily identify the groups and can serve each group by offering an entry-fee to the club and number of drink tokens

(a) What would be the entry-fee and the number of drink tokens for each student.

(b) What would be the entry-fee and the number of drink tokens for non-each student.

(c) If there were 100 students and 100 non-students, what would the club owner’s profit be under this pricing regime?

(d) What would you call this pricing regime?

"Health Care Reform - Why spending more will get you less" Your submission must contain the following issues: a) the uninsured; b) what is causing the increasing in health care costs; c) health care reform; d) the Moral Hazard problem; e) will extra preventive care cut costs Instructions: 1. You must cite 2 current sources (within 2 years) and your book or any other textbook, Wikipedia, or any other reference material cannot be used as any of the sources. Sources should be cited according to APA

Please write a 250 word post about the following:

1) Your personal experience with COV-19

2) The virus' impact on the economy from a microeconomic perspective: businesses, layoffs, decreased production and output

3) Suggestions for how businesses can cope over the next few months. Do you perceive a difference in the government's response for large corporations vs. small businesses, e.g. large corps speak directly to the President while small businesses have to apply for loans and various bailouts; business bailouts tied to not laying off workers.