Higher basic benefits increase the breakeven level of income faced by welfare recipients.
Answer the following statement true (T) or false (F)
True
The breakeven level of income is equal to the basic benefits divided by the marginal tax rate; since the basic benefits are in the numerator of the fraction, if they increase, then the breakeven level of income will also increase.
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Public goods are
A) under provided by the private market because the marginal cost of production is too high. B) under provided by the private market because the marginal benefits of consumption are too low. C) under provided by the private market because people's willingness to pay for the good is less than the marginal benefit of the good. D) over provided by the private market because the marginal benefits of consumption are too high.
According to the permanent income hypothesis, the impact of ________
A) a change in permanent income on consumption is greater than the impact resulting from a change in transitory income B) a change in transitory income on consumption is greater than the impact resulting from a change in permanent income C) a change in transitory income is felt primarily through changes in the total tax revenue paid to the federal government D) a change in permanent income on consumption is larger than the impact resulting from a change in future income
Externalities can create a threat to environmental quality
a. True b. False Indicate whether the statement is true or false
Other things the same, a decrease in the real interest rate raises the quantity of
a. domestic investment and net capital outflow. b. domestic investment but not net capital outflow. c. net capital outflow but not domestic investment. d. neither domestic investment nor net capital outflow.