Suppose the welfare benefit formula is


Suppose the welfare benefit formula is Benefit=$4,800-0.67(wages>$6,000) what is the marginal tax rate on The first 6,000 of wages? Wages above 6,000 How large is the benefit if wages equal $0? $4,000 and $4,800, $9000 and 7,000? What is the breakeven level of income in this case? A welfare recipien can receive food stamps as well as cahs welfare benefits. If the food stamp allotment is set as follows, Food stamps=$5000 - 0.30 (wages) A) how high can wages rise before all food stamps are eliminated? B) If the welfare benefit formula in Problem 1 applies, what is the combined marginal tax rate of both welfare and food stamps for wages above $6000?

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Business Economics: Suppose the welfare benefit formula is
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