A Welfare Program Offers $4000 of Benefits to Those Not

question 37

Multiple Choice

A welfare program offers $4000 of benefits to those not working.For those working,it reduces benefits dollar for dollar until there are no benefits to be paid.The program is then modified so that for every dollar earned,benefits are only reduced by 50 cents.Mr.X earned $6000 under the old program.What will be the effect of the new program (noting that he is in the range to receive benefits) ?

• A) Both his income and substitution effect will decrease his desired hours of work.
• B) Both his income and substitution effect will increase his desired hours of work.
• C) His income effect will increase his desired hours of work, but his substitution effect will decrease his desired hours of work.
• D) His income effect will decrease his desired hours of work, but his substitution effect will increase his desired hours of work.

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Definitions:

Tertiary Deviance

Redefining the stigma associated with a deviant label as a positive phenomenon.

W. I. Thomas

An influential sociologist known for the Thomas theorem which states "If men define situations as real, they are real in their consequences," highlighting the subjective nature of reality in social contexts.

Conflict Theorist

A sociologist or academic who explores how societal conflicts, often stemming from inequality and power disparities, contribute to social change and the structure of society.

Agricultural Product

Goods produced through farming and agriculture, including crops, livestock, and other raw materials derived from plants and animals.