The Earned Income Tax Credit (EITC)
A. provides more income to those people on welfare.
B. is a tax on low income workers.
C. provides additional tax credits to low income workers.
D. is a tax break for the wealthiest Americans.
C. provides additional tax credits to low income workers.
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A firm should make an investment only if
a. it is profitable in every year. b. the present value of the profits exceeds the present value of the costs. c. the present value of the revenues exceeds the present value of the costs. d. there are no large losses in the early years.
Which of the following can be considered an example of structural unemployment?
a. A recent graduate searching for his first job b. A ski instructor looking for a part-time job during summer c. An engineer looking for a new job after losing his job during a recession d. A typist looking for a new job as his skills are not needed in the current labor market
Suppose the economy starts off producing Natural Real GDP. Next, aggregate demand rises, ceteris paribus. As a result, the price level rises in the short run. In the long run, when the economy has moved back to producing Natural Real GDP, the price level will be
A) higher than it was in short-run equilibrium. B) lower than it was in short-run equilibrium but higher than it was originally (before aggregate demand increased). C) lower than it was originally (before aggregate demand increased). D) equal to what it was originally (before aggregate demand increased).
Related to the Economics in Practice on page 221: Because land is demand determined, an acre of land in downtown San Francisco, California ________ an acre of land in downtown Knoxville, Tennessee.
A. would most likely cost less than B. would most likely cost more than C. should cost approximately the same as D. would cost exactly the same as