What are the strengths and weaknesses of the negative income tax (NIT) as an alternative to traditional welfare programs?
What will be an ideal response?
The tax would increase the incentive to earn since one’s income would always rise if earnings increased. Traditional welfare programs effectively tax away very high percentages of additional earnings by reducing payments substantially. The down side of the NIT is that incomes considerably above the poverty level would still receive money, so that the overall program could be costly.
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A sudden massive reduction in the availability of chocolate will likely cause the price of chocolate to ________, which will ________ the quantity of chocolate demanded by consumers
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
What is meant by the demand for money?
What will be an ideal response?
The function of money that provides for a commonly recognized measure of value for the price system is a(n)
A) medium of exchange. B) unit of accounting. C) store of value. D) standard of deferred payment.
Which of the following contributed to the collapse of the Bretton Woods system?
a. chronic U.S. trade surpluses b. fixed exchange rates c. an insufficient gold supply d. West Germany's allowing the dollar to float against the mark e. West Germany's not wanting the dollar to appreciate