A disadvantage associated with an Earned Income Tax Credit (EITC) program to reduce poverty is that it
a. encourages illegitimate births because single women with children receive higher payments.
b. rewards laziness because it provides payments to those with low incomes regardless of their work effort.
c. does not help the poor who are unemployed.
d. creates unemployment by increasing the wage paid to unskilled workers above the equilibrium wage.
c
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A medical doctor who specializes in a particular field (e.g., surgery) generally earns more than a general practitioner because
a. of greater education and training requirements b. of differences in labor mobility c. a general practitioner is more likely to work in an urban area d. of discrimination e. a general practitioner treats a greater number of patients per day
If England buys hockey sticks from Canada, then:
A. England has an absolute advantage over Canada in making hockey sticks. B. Canada has an absolute advantage over England in making hockey sticks. C. England has the comparative advantage over Canada in making hockey sticks. D. Canada has the comparative advantage over England in making hockey sticks.
Suppose the cost of raw materials used by the cotton industry rises to a larger extent compared to the increase in demand in the market. Which of the following situations will arise?
a. The incidence of the higher cost will fall completely on the consumers. b. The incidence of the higher cost will fall completely on the high cost firms. c. The incidence of the higher cost will fall completely on the low cost firms. d. The incidence of the higher cost will fall partially on the consumers and partially on the sellers.
Which of the following is an example of an externality?
a. cigarette smoke that permeates an entire restaurant b. a flu shot that prevents a student from transmitting the virus to her roommate c. a beautiful flower garden outside of the local post office d. All of the above are correct.