Which of the following is true?
A. If income increases, a consumer will always consume more of a good.
B. At a point of consumer equilibrium, the MRS always equals 1.
C. Indifference curves may intersect.
D. None of the statements is correct.
Answer: D
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Which of the following is an implication of the law of comparative advantage?
a. Countries with small amounts of labor relative to capital should specialize in producing labor-intensive commodities. b. Since workers in high-income countries utilize larger amounts of capital than workers in less developed nations, trade between capital-rich and capital-poor nations results in the exploitation of labor in the less developed countries. c. Countries that are high cost producers of agricultural products should trade those products for goods they can produce only at a low opportunity cost. d. Countries that are low opportunity cost producers of timber products should trade those products for goods they can produce only at a high opportunity cost.
Figure 20-4
In Figure 20-4, which panel depicts a union suffering unemployment during a recession rather than allowing the wage to fall?
A. 1 B. 2 C. 3 D. 4
Which is the most accurate statement?
A. Workfare has been a great success in moving millions of people off the welfare rolls into minimum wage jobs. B. Most people on welfare are now limited to receiving benefits for no more than 5 years during their entire adult lives. C. The Personal Responsibility and Work Opportunity Act of 1996 provides jobs or training for every adult who desires to leave welfare. D. Until the passage of welfare legislation in 1996, the welfare rolls had been rising for the previous 6 years.
After subtracting all deductions and exemptions from total income, you are left with
A. the tax base. B. marginal income. C. taxable income. D. standardized income.