For a Cash Assistance Program with a Base Payment of $100

question 5

Multiple Choice

For a cash assistance program with a base payment of $100 and an implicit tax rate of -½, a person who works 10 hours for $10 per hour will have a total cash assistance payment of ___ and total income of _____

• A)$100, $150
• B)$100, $200
• C)$0, $100
• D)$50, $150

---

Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at various prices.

Marginal Utility

The additional satisfaction or advantage a consumer experiences from consuming one more unit of a product or service.

Maximizing Utility

Maximizing Utility refers to the economic goal of consumers to gain the highest level of satisfaction from their consumption choices, within their budget constraints.

Salience of Prices

The degree to which the price of a good or service stands out to consumers and influences their purchasing decisions.