Increases in the minimum wage are intended to raise the incomes of low-income workers. Many economists favor a different policy to achieve this goal, a policy that avoids the deadweight losses that result from the minimum wage. What is this policy?
A) the Alternative Minimum Tax
B) the earned income tax credit
C) distribution of food stamps to low-income consumers
D) distribution of vouchers that can be used for rent or mortgage payments
B
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Consider the demand curves for soft drinks shown in the figure above. A movement from point a to point c represents
A) a decrease in quantity demanded. B) an increase in demand. C) an increase in quantity demanded. D) a decrease in demand.
When humanitarian efforts to free Sudanese slaves were introduced, ________ increased initially, which led to ________ prices
Over time, the slave trade became ________ profitable and the supply of slaves ________. A) supply; lower; less; decreased B) demand; lower; more; decreased C) demand; higher; more; increased D) supply; higher; more; increased
A one-year Treasury bill that sells for $943.40 and has a face value of $1,000 has an annual yield of
A) 8 percent. B) 7 percent. C) 6 percent. D) 5 percent.
When a resource has a perfectly elastic supply curve
A. the entire payment received by this resource is economic rent. B. the amount of economic rent for the resource is determined by its supply. C. the amount of economic rent for this resource is determined by demand for the resource. D. there is no economic rent being earned by this resource.