If a negative income tax system were implemented, then the poor would have no incentive to find work
a. True
b. False
Indicate whether the statement is true or false
False
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Monopolies can make an economic profit in the long run because of
A) rent seeking by competitors. B) the elastic demand for the monopoly's product. C) the cost-savings gained by the monopoly. D) barriers to enter the monopoly's market.
Which of the following would shift a nation's production possibilities frontier outward?
A) an increase in demand for the nation's products B) discovering a cheaper way to convert sunshine into electricity C) a decrease in the unemployment rate D) a law requiring workers to retire at age 50
Refer to the above figure. A farmer has 50 acres of land on which to grow wheat or beans. An acre of land yields 400 bushels of beans or 800 bushels of wheat
Which of the following is a possible combination of beans and wheat that can be grown, assuming the land is farmed efficiently? A) 30,000 bushels of each B) 15,000 bushels of beans and 10,000 bushels of wheat C) 25,000 bushels of beans and 25,000 bushels of wheat D) 20,000 bushels of beans and 40,000 bushels of wheat
Under the assumption of rational expectations, real GDP is determined by
A) the economy's aggregate demand curve. B) the Fed. C) a combination of monetary and fiscal policy. D) the nation's long-run aggregate supply curve.