Which of the following would move the Lorenz curve closer to the diagonal?
A. A 20 percent boost in Social Security retirement benefits.
B. An increase in payroll taxes.
C. A reduction in the progressiveness of the federal personal income tax.
D. The elimination of the TANF program.
Answer: A
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The dollar is regarded as the "safe haven" currency; investors flock to it when they are worried about the outlook for the global economy
Fears were at their greatest in late 2008 and early 2009 after the collapse of the Lehman Brothers investment bank in September 2008. As investors flocked to the dollar A) the demand for dollars increased and the exchange rate increased. B) the demand for dollars decreased and the exchange rate decreased. C) the supply of dollars increased and the exchange rate decreased. D) the supply of dollars decreased and the exchange rate increased.
As the unemployment rate declines in response to the economy moving closer and closer to capacity output, the aggregate price level rises at a decreasing rate.
Answer the following statement true (T) or false (F)
Refer to the scenario above. The winner of this auction will earn a surplus of ________ if he follows his dominant strategy
A) $100 B) $300 C) $400 D) $200
When making a rational decision which requires the consideration of costs and benefits involved, the opportunity cost of a decision is often not taken into consideration when indeed it should be
a. True b. False Indicate whether the statement is true or false