U NITChapter 4: Problems 8, 22, 30, 38
Section C100 C HAPTER 4
a) If individuals with an income less than $13, 000 are defined as “poor”, the people with income slightly
higher than $13, 000, may start to report a lower income for themselves in order to get the benefits the
government provides for “poor people”. They might also quit their current jobs and find part time jobs
that they do not report their income to.
b) If single parents are defined as “poor” by the government, more people would be getting divorced since
they would not have to worry about not having enough money to support their kids as a single parent.
Accidental pregnancies by unwed couples may also result in one party deciding to keep the baby and
become a single parents because of the support that is available to them.
c) If blind people are defined to be poor and have more benefits from the government, not a lot of
substitutions will be made by individuals for the benefits blind people receives. This is because the
benefits received is not the same value as their eye sight. Therefore, they would not be substituting their
eye sights for some money and benefits.
If we are assuming that income i