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John, 31, earns $10,000 a year as a seasonal worker at Macy's. His parents earn a combined income of $200,000 as lawyers. This is an example of:

User BlueDog
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Final answer:

John and his parents' earnings exemplify income inequality. The tables for Jonathon and Susan would show how government benefits reduce as they earn more income, demonstrating the welfare cliffs concept.

Step-by-step explanation:

The question pertains to the subject of Economics and particularly addresses income, government benefits, and the work choices of individuals. To address the first situation regarding John and his parents' income, this is an example of income inequality or income disparity. The vast discrepancy between John's earnings as a seasonal worker and his parent's high combined income as lawyers reflects differing economic statuses that are part of broader, systemic socioeconomic issues.

For Jonathon and Susan's scenarios, we need to create a table showing the tradeoff between work hours and government benefits, which illustrates the concept of welfare cliffs or benefits tapering. This concept is relevant in discussions of labor economics and public policy, as it deals with the incentives or disincentives for individuals to work when they receive welfare.

As for the table and labor-leisure diagram, we would need to calculate Jonathon's and Susan's earnings from work, subtract dollar for dollar for governmental support, and present the total income that combines earnings and government support. This would clearly show the effect of government benefits on an individual's decision to work more or fewer hours. Unfortunately, I am unable to create actual tables or diagrams within this text response.

User Khurram Ishaque
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