Use the Following Formula to Answer the Indicated Question: Welfare

question 4

Multiple Choice

Use the following formula to answer the indicated question: Welfare benefit = Maximum benefit - 0.4 [Wages - (Work expenses + Child care costs) ] Suppose Shanika works 2,000 hours per year at a wage of $6 per hour,has child care expenses of $3,000 per year,and has work expenses of $900.If the state maximum welfare benefit is $11,000 per year,based on the welfare formula given,Shanika's welfare benefit will be

• A)$2,900.
• B)$8,100.
• C)$7,760.
• D)Zero because her income exceeds the limit.

Understand the role of quality changes and consumer choice in the calculation of the CPI.

Understand the definitions and implications of real and nominal interest rates.

Grasp the concept and calculation of the Consumer Price Index (CPI) and how it measures inflation.

Comprehend the distinction between core CPI and overall CPI.

---

Definitions:

Competitive Level

A state in a market where firms are able to enter and exit freely, and prices are determined by supply and demand.

Industry

A classification of businesses that perform similar types of work or produce similar goods and services.

Output

The total amount of goods or services produced by a company or economy.

Marginal Social Cost

Sum of the marginal cost of production and the marginal external cost.