The fundamental criticism from the efficiency perspective of AFDC and other antipoverty programs is that
a. they do not help families with unemployed fathers.
b. the benefits are too low.
c. they offer disincentives to earning income.
d. the tax on this income is too low.
c
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Using community indifference curves to reflect tastes of the community
A) is a simple extension of indifference curve analysis because people are so different. B) cannot usually be done because the community may have inconsistent tastes even though its residents do not. C) is a simple extension of indifference curve analysis if people are all alike. D) Both B and C.
Josh is going to spend all of his income. For the last unit of Good X consumed Josh gets 20 utils and for the last unit of Good Y consumed he gets 10 utils. The price of Good X is $4. The price of Good Y is $1. If Josh wants to maximize his utility he should
A. continue to purchase the same amount of Good X and Good Y. B. increase the consumption of Good X and decrease the consumption of Good Y. C. decrease the consumption of Good X and increase the consumption of Good Y. D. decrease the consumption of Good X and decrease the consumption of Good Y.
If the CPI declines from one year to the next, then the following statements are true, except:
A. There is deflation B. The inflation rate is negative C. The average price level is decreasing D. The CPI turns negative in the next year
If profit is commonly defined as "total revenue minus total cost," then
A) there is no way to measure losses. B) a negative profit implies a loss. C) losses can only be measured as "total cost minus total revenue." D) profits must always equal losses.