When the government provides poor families with antipoverty programs such as welfare, Medicaid, food stamps, and the Earned Income Tax Credit which are all tied to income,
a. the government creates an egalitarian distribution of income.
b. the recipients can usually receive benefits for an unlimited amount of time.
c. it is common for families to face very high effective marginal tax rates.
d. the incentive to work and earn more income remains unchanged.
c
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Currency circulated by banks that could be redeemed for gold was called
A) junk bonds. B) banknotes. C) gold bills. D) state money.
What is the best definition of quality bias?
a. failure to capture the savings that households enjoy when they change their spending in response to relative price changes b. failure to account for price changes to an item that result from product improvement c. overstating of the prices some buyers actually pay for goods from cheaper retail outlets d. failure to include new products into the Consumer Price Index until they become commonplace
Which of the following is considered investment?
A. Sherri purchases a new van for commuting to and from work. B. Jackson purchases a new car to replace an old car in his food delivery business. C. Johnny buys a new car for his wife as an anniversary gift. D. Jane purchases a new truck for commuting to and from school.
Which of the following statements is TRUE about the relationship between high birthrates and real Gross Domestic Product (GDP) growth?
A. The influence that birthrates have on real GDP growth is the same in countries whether or not economic freedom exits. B. High birthrates in countries with little economic freedom will lead to higher labor force participation rates that in turn lead to higher growth of real GDP. C. There is no relationship between birthrates and real GDP growth. D. High birthrates reduce per capita incomes, and a lack of economic freedom inhibits real GDP growth.