# 14.2 The poverty trap  (Page 6/10)

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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 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.

Jonathon’s options for working and total income are shown in the following table. His labor-leisure diagram is shown in the figure following the table. Number of Work Hours Earnings from Work Government Benefits Total Income 1,500 \$9,000 \$1,000 \$10,000 1,200 \$7,200 \$2,800 \$10,000 900 \$5,400 \$4,600 \$10,000 600 \$3,600 \$6,400 \$10,000 300 \$1,800 \$8,200 \$10,000 0 \$0 \$10,000 \$10,000

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#### Questions & Answers

marginal cost formula
you should differentiate the total cost function in order to get marginal cost function then you can get marginal cost from it
boniphace
What about total cost
Foday
ok
Foday
formula of cross elasticity of demand
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what is ceteris parabus
Priyanka
Ceteris paribus - Literally, "other things being equal"; usually used in economics to indicate that all variables except the ones specified are assumed not to change.
Abdullah
What is broker
scor
land is natural resources that is made by nature
scor
What is broker
scor
what is land
kafui
What is broker
scor
land is natural resources that is made by nature
scor
whats poppina nigga turn it up for a minute get it
what is this?
Philo
am from nigeria@ pilo
Frank
am from nigeria@ pilo
Frank
so
owusu
what is production possibility frontier
owusu
it's a summary of opportunity cost depicted on a curve.
okhiria
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please l need past question about economics
ok let me know some of the questions please.
Effah
ok am not wit some if den nw buh by tommorow I shall get Dem
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Ukpen
hello I'm Babaisa alhaji Mustapha. I'm studying Economics in the university of Maiduguri
Babaisa
okay
Humaira
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Faisal
Hi guys..I am from Bangladesh..
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igwe
Fedric Wilson Taylor also define management as the act of knowing what to do and seeing that it is done in the best and cheapest way
OLANIYI
difference between microeconomics and macroeconomic
microeconomics is the study of individual units, firm and government while macroeconomics is the study of the economic aggregates.
okhiria
The classical theory of full employment
Lovely
what is monopoli power
the situation that prevails when economic forces balance so that economic variables neither increase nor decrease
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what is equilibrium
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Economics is important because it helps people understand how a variety of factors work with and against each other to control how resources such as labor and capital get used, and how inflation, supply, demand, interest rates and other factors determine how much you pay for goods and services.
explain the steps taken by the government in developing rural market?
government provide good road for than
Abigailb
government should provide good agricultural project and it should also provide good road so that the the product that will come out of the farm will be easy transport to the market
ALIMAMY
farming equipments should be provided to farmers to help them improve in farming
Agbor
improving the transport systems providing enterpreneur edecation to the mass living in rural zones enforcment of loans and capital for the people rising awareness on the advantages of rural areas
abdul
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I will join
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I will join
Patrick
Hey
Fatima
Hey
Amir
Hello
AS
hey
Umarou
I love this book and i need extra Economic book
Amir
Hey
Amir
what's happening here
AS
I love this book and i need extra Economic book
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what is the meaning of function in economics
Pls, I need more explanation on price Elasticity of Supply
Is the degree to the degree of responsiveness of a change in quantity supplied of goods to a change in price
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what is production
Humaira
Okay what is land mobile and land unmobile
scor
And what are the resources in land
scor
the proces of using the services of labor and equipmnt together with other in puts to make goods and services availble
Bombey
Okay what is land mobile and land unmobile
scor