Use the following formula to answer the indicated question: Welfare benefit = Maximum benefit - Wages A welfare system based on the welfare formula given
A. Will increase the risk of moral hazard.
B. Will increase the number of people eligible for welfare.
C. Has an effective marginal tax rate of 50 percent for welfare recipients.
D. Will increase work incentives.
Answer: A
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A) 50% B) 15% C) 20% D) 30%
In the calculation of gross domestic product by the expenditure approach, the "investment" component is
A) net investment. B) gross investment minus depreciation. C) gross investment plus depreciation. D) gross investment.
There is anecdotal evidence to suggest that global inequalities are often rooted in inequities
Indicate whether the statement is true or false
When measuring GDP, only final goods and services are counted in order to avoid double counting
Indicate whether the statement is true or false