Related to the Economics in Practice on p. 105: Researchers found that after a few years of a tax relief policy for foreigners, the fraction of foreigners in the top 0.5 percent of income earners in Denmark almost doubled. The researchers concluded that for this group of workers, labor supply seems to be
A. perfectly inelastic
B. unit elastic.
C. elastic.
D. inelastic.
Answer: C
You might also like to view...
In Figure 13-3 above, suppose that the Fed maintains a fixed real money supply and that commodity demand is also fixed. The range of shifts in the LM curve, LM1 to LM2 can then only be explained by
A) changes in the velocity of money. B) changes in the price level. C) changes in the demand for money. D) A and C.
Exhibit 12-7 Negative income tax
As shown in Exhibit 12-7, a family of four with no earned income receives ____ from the government.
A. zero payment. B. the break-even income of $40,000. C. a $20,000 payment. D. a $20,000 tax deferment.
A bond pays a coupon (or interest) rate of 5 percent each year for five years, with a future (face) value of $200. If the bond was sold today, what would be the present value of the bond?
A. $200 B. $157 C. $150 D. $145
If marginal product is greater than average product, then
A. marginal product must be decreasing. B. marginal product must be increasing. C. average product must be decreasing. D. marginal product could either be increasing or decreasing.