Increases in the minimum wage are intended to raise the incomes of low-income workers. Many economists favor a different policy to achieve this goal, a policy that avoids the deadweight losses that result from the minimum wage
What is this policy?
A) distribution of vouchers that can be used for rent or mortgage payments
B) the earned income tax credit
C) the Alternative Minimum Tax
D) distribution of food stamps to low-income consumers
B
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Refer to Figure 8.3. Holding other variables constant, if the economy is originally in equilibrium at the intersection of D2 and S2 and households increase their preference for leisure over labor, the economy would move to the new equilibrium point
represented by A) w1 and L2. B) w3 and L2. C) w2 and L2. D) w2 and L1.
A pure public good is _____ and _____
a. nonexcludable; private in consumption b. excludable; private in consumption c. excludable; collective in consumption d. nonexcludable; collective in consumption
Exhibit 6-7 Marginal utility for sandwiches and sodas Quantity Sandwiches Sodas 1 10 5 2 8 4 3 6 3 4 3 1 5 ?1 0 Refer to Exhibit 6-7. If the price of a sandwich is $1 and the price of a soda is $1, Marian should spend her first dollar on a ____ and her second dollar on a ____.
A. sandwich; soda B. sandwich; sandwich C. soda; sandwich D. soda; soda
The minimum point on the average variable cost curve is called
A) the shutdown point. B) the break-even point. C) the loss-minimizing point. D) the point of diminishing returns.