The fundamental criticism from the efficiency perspective of AFDC and other antipoverty programs is that
A. they do not help families with unemployed fathers.
B. the benefits are too low.
C. they offer disincentives to earning income.
D. the tax on this income is too low.
Answer: C
You might also like to view...
Suppose the central bank announces that it will permanently increase the inflation rate and there is central bank credibility
With adaptive expectations, expectations of inflation will adjust ________, and with rational expectations, expectations of inflation adjust ________. A) slowly; slowly B) slowly; immediately C) immediately; immediately D) immediately; slowly
Corporate cultures
A) are part of a strategic plan. B) can limit the effectiveness of a merger. C) arise when transactions costs are very low. D) all of these choices.
Suppose a consumer spends her income on two goods: iTunes music downloads and books. The consumer has $100 to allocate to these two goods, the price of a downloaded song is $1, and the price of a book is $20 . What is the maximum number of books the consumer can purchase?
a. 100 b. 20 c. 10 d. 5
If actual output exceeds potential output, the economy:
A. is experiencing a recessionary gap. B. may be in a long-run equilibrium but is not in a short-run equilibrium. C. is experiencing an inflationary gap. D. is in neither a short-run nor long-run equilibrium.