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Category > Accounting Posted 21 May 2017 My Price 3.00

Show that whether an individual accepts welfare depends on the individual’s tastes.

Under a welfare plan, poor people are given a lumpsum payment of $L. If they accept this welfare payment, they must pay a high tax,  on anything they earn. If they do not accept the welfare payment, they do not have to pay a tax on their earnings. Show that whether an individual accepts welfare depends on the individual’s tastes.

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(8)
Status NEW Posted 21 May 2017 04:05 PM My Price 3.00

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file 1495383700-Answer.docx preview (114 words )
U-----------nde-----------r a----------- we-----------lfa-----------re -----------pla-----------n, -----------poo-----------r p-----------eop-----------le -----------are----------- gi-----------ven----------- a -----------lum-----------psu-----------m p-----------aym-----------ent----------- of----------- $L-----------. I-----------f t-----------hey----------- ac-----------cep-----------t t-----------his----------- we-----------lfa-----------re -----------pay-----------men-----------t, -----------the-----------y m-----------ust----------- pa-----------y a----------- hi-----------gh -----------tax-----------, ----------- o-----------n a-----------nyt-----------hin-----------g t-----------hey----------- ea-----------rn.----------- If----------- th-----------ey -----------do -----------not----------- ac-----------cep-----------t t-----------he -----------wel-----------far-----------e p-----------aym-----------ent-----------, t-----------hey----------- do----------- no-----------t h-----------ave----------- to----------- pa-----------y a----------- ta-----------x o-----------n t-----------hei-----------r e-----------arn-----------ing-----------s. -----------Sho-----------w t-----------hat----------- wh-----------eth-----------er -----------an -----------ind-----------ivi-----------dua-----------l a-----------cce-----------pts----------- we-----------lfa-----------re -----------dep-----------end-----------s o-----------n t-----------he -----------ind-----------ivi-----------dua-----------lâ€-----------™s -----------tas-----------tes-----------. -----------Ans-----------wer----------- I-----------f t-----------he -----------poo-----------r p-----------eop-----------le -----------wil-----------l n-----------ot -----------acc-----------ept----------- th-----------e w-----------elf-----------are----------- pa-----------yme-----------ntÂ----------- th-----------an -----------the-----------ir -----------tot-----------al -----------tax----------- wo-----------uld----------- be-----------
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