Suppose that a family saves and borrows to buffer itself against changes in income. These actions relate to which problem in measuring inequality?
a. in-kind transfers
b. negative income tax
c. transitory versus permanent income
d. economic mobility
c
You might also like to view...
Which of the following is most central to the understanding of the economic crisis of 2008?
a. the decline of the stock market in late 2007 b. the housing boom (2001-2005) and bust (2007-2008) c. the sharp rise in oil prices in 2008 d. unethical investment practices beginning in 2000
The marginal revenue product of labor is the:
A. change in labor necessary to produce an additional unit of output. B. cost of additional labor necessary to produce an additional unit of output. C. change in output resulting from adding an additional unit of labor. D. change in revenue resulting from adding an additional unit of labor.
Some nations avoid the effects of trade deflection in a trade bloc by enforcing
A. quotas. B. trade diversion. C. trade deflection. D. rules of origin.
Leo is a welfare recipient who qualifies for two means-tested cash benefit programs. If he does not earn any income, he receives $225 from each program. For each dollar he earns (which his employer is required to report to the welfare agency), his benefit from each program is reduced by 75 cents until the benefit equals zero. If Leo only values income and not how the income was acquired, then he must earn ________ to be as well off as when he earns nothing and receives benefits.
A. $350 B. $225 C. $450 D. $300