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Federal housing choice vouchers ($19 billion in 2015) and food stamps ($74 billion in 2014) are two of the largest in-kind transfer programs for the poor. Many poor people are eligible for both programs: 30% of housing assistance recipients also used food stamps, and 38% of food stamp participants also received housing assistance (Harkness and Newman, 2003). Suppose Jill's income is $500 a month, which she spends on food and housing. The price of food and of housing is each $1 per unit. Draw her budget line. If she receives $100 in food stamps and $50 in a housing subsidy (which she can only spend on housing), how do her budget line and opportunity set change? 1.) Use the line drawing tool to draw Jill's budget line without food stamps and federal housing support. Label this line 'L¹ 2.) Using the multipoint curved line drawing tool to draw Jill's budget line with $100 in food stamps and a $50 housing subsidy. Label this line 'L² Carefully follow the instructions above, and only draw the required objects. Housing per month 800- 700- 600- 500- 400- 300- 200- 100- 0+ 0 100 200 300 400 500 600 700 800 Food per month

Federal housing choice vouchers ($19 billion in 2015) and food stamps ($74 billion in 2014) are two of the largest in-kind transfer programs for the poor. Many poor people are eligible for both programs: 30% of housing assistance recipients also used food stamps, and 38% of food stamp participants also received housing assistance (Harkness and Newman, 2003). Suppose Jill's income is $500 a month, which she spends on food and housing. The price of food and of housing is each $1 per unit. Draw her budget line. If she receives $100 in food stamps and $50 in a housing subsidy (which she can only spend on housing), how do her budget line and opportunity set change? 1.) Use the line drawing tool to draw Jill's budget line without food stamps and federal housing support. Label this line 'L¹ 2.) Using the multipoint curved line drawing tool to draw Jill's budget line with $100 in food stamps and a $50 housing subsidy. Label this line 'L² Carefully follow the instructions above, and only draw the required objects. Housing per month 800- 700- 600- 500- 400- 300- 200- 100- 0+ 0 100 200 300 400 500 600 700 800 Food per month

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Federal housing choice vouchers ($19 billion in 2015) and food stamps ($74 billion in 2014) are two of the largest in-kind transfer programs for the poor. Many poor people are eligible for both programs: 30% of housing assistance recipients also used food stamps, and 38% of food stamp participants also received housing assistance (Harkness and Newman, 2003). Suppose Jill's income is $500 a month, which she spends on food and housing. The price of food and of housing is each $1 per unit. Draw her budget line. If she receives $100 in food stamps and $50 in a housing subsidy (which she can only spend on housing), how do her budget line and opportunity set change? 1.) Use the line drawing tool to draw Jill's budget line without food stamps and federal housing support. Label this line 'L¹ 2.) Using the multipoint curved line drawing tool to draw Jill's budget line with $100 in food stamps and a $50 housing subsidy. Label this line 'L² Carefully follow the instructions above, and only draw the required objects. Housing per month 800- 700- 600- 500- 400- 300- 200- 100- 0+ 0 100 200 300 400 500 600 700 800 Food per month
Transcribed Image Text:Federal housing choice vouchers ($19 billion in 2015) and food stamps ($74 billion in 2014) are two of the largest in-kind transfer programs for the poor. Many poor people are eligible for both programs: 30% of housing assistance recipients also used food stamps, and 38% of food stamp participants also received housing assistance (Harkness and Newman, 2003). Suppose Jill's income is $500 a month, which she spends on food and housing. The price of food and of housing is each $1 per unit. Draw her budget line. If she receives $100 in food stamps and $50 in a housing subsidy (which she can only spend on housing), how do her budget line and opportunity set change? 1.) Use the line drawing tool to draw Jill's budget line without food stamps and federal housing support. Label this line 'L¹ 2.) Using the multipoint curved line drawing tool to draw Jill's budget line with $100 in food stamps and a $50 housing subsidy. Label this line 'L² Carefully follow the instructions above, and only draw the required objects. Housing per month 800- 700- 600- 500- 400- 300- 200- 100- 0+ 0 100 200 300 400 500 600 700 800 Food per month
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