Cash payments are generally preferable to in-kind payments when the utility of the transfer recipient is the only criterion because _____
a. it is cheaper to distribute in-kind benefits
b. cash is necessary for utility maximization
c. recipients know their utility functions better than anyone else
d. of diminishing marginal utility
c
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The amount single retirees receive in a monthly check if they retire at their retirement age is
A. their PIA. B. their AIME. C. constant throughout their lifetime. D. the most the retiree can receive in interest without having part of their benefit reduced.
The figure above shows the supply and demand curves for pizza. If the market is at its competitive equilibrium, what area in the graph above represents:
a. consumer surplus? b. producer surplus?
An endogenous variable is typically ________
A) taken as given B) strictly explained outside the model C) strictly explained inside the model D) strictly explained by data E) strictly explained by graphical analysis
Which of the following industries can create barriers to the entry of new firms due to size and specificity?
a. A hydroelectric power plant b. A garment manufacturer exporting apparels c. An owner of a retail chain d. An automobile manufacturing company