Exhibit 12-9 Negative Income Tax
?
As shown in Exhibit 12-9, a family of four does not pay income taxes at:
A. an income of $25,000.
B. any income between zero and $20,000.
C. all levels of income.
D. any income above $20,000.
Answer: B
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Indicate whether the statement is true or false
A bank can safely lend only an amount equal to its excess reserves because
A) all of its reserves are now required reserves. B) borrowers will spend the proceeds of their loans, and the bank will lose all of its excess reserves. C) the excess reserves will fall to zero when the bank makes the loans. D) This is not true since a bank can safely lend an amount equal to its total reserves.
Which of the following is true regarding scarcity?
a. Scarcity could be eliminated if all economies of the world would work together to solve world hunger. b. Scarcity could be eliminated if we had full employment. c. It is impossible to eliminate scarcity, given limited resources and unlimited wants. d. Scarcity could be eliminated if all economies of the world would adopt communism. e. Scarcity could be eliminated if all economies of the world would adopt a free market system.
If other factors remain unchanged, technological progress in producing good A definitely will lead to
A. an increase in the market clearing price of good A and a decrease in the equilibrium quantity of good A. B. a decrease in both the market clearing price and the equilibrium quantity of good A. C. an increase in both the market clearing price and the equilibrium quantity of good A. D. a decrease in the market clearing price of good A and an increase in the equilibrium quantity of good A.