What happens to the maximum amount of "all other goods" that this person can buy if instead he receives the $100 in food coupons? What's the maximum amount of food he can buy under this plan?
What will be an ideal response?
He still can only purchase 500 units of "all other goods". The maximum amount of food is 300 units.
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Transfer payments refer to payments from the government to ________
A) other government agencies B) distribute state taxes collected by the government to individual states C) reimburse property taxes paid by states for government property leases D) certain individuals or groups
The income effect refers to the impact of a change in
a. income on the price of a good b. the general price level caused by a change in the price of another good c. the price of a good on real income d. the price of a substitute for the good under consideration e. demand when income changes
A new U.S. import quota on imported steel would be likely to: a. raise the cost of production to steel-using American firms. b. generate tax revenue to the government
c. decrease U.S. production of steel. d. increase the production of steel-using American firms.
The interest rate on a bond is
A) inversely related to its price. B) directly related to its price. C) determined by its face value. D) determined by the time to maturity.