Investment in physical and human capital is typically encouraged by
A. lower taxes on returns to education.
B. lower taxes on interest income.
C. lower taxes on investment returns.
D. all of the options are correct.
Answer: D
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Suppose a negative income tax program is established at 25 percent, and a poverty threshold minimum of $15,000 is guaranteed for a family of four. What is the highest income a family could earn in the workplace before being cut out of the government program?
a. $20,000 b. $15,000 c. $18,750 d. $60,000 e. $10,000
The figure below shows the supply and demand curves for oranges in Smallville.
At a price of $4 per pound there will be an excess ________ of ________ pounds of oranges per day.
A. supply; 10 B. supply; 20 C. demand; 30 D. demand; 20
High unemployment is socially wasteful. Why?
What will be an ideal response?
The soft-drink and automobile industries would be examples of which market model?
A. Monopolistic competition B. Pure competition C. Pure monopoly D. Oligopoly