Legislators are not likely to substitute money transfers to low-income people for in-kind benefits (e.g., food stamps, health care) because
A) low-income people generally do not know how to manage money effectively.
B) low-income people prefer in-kind transfers.
C) special interest groups benefit from the system of in-kind transfers.
D) giving cash to the poor would necessitate a tax increase.
C
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Joe runs a business and needs to decide how many hours to stay open. Figure 2.2 illustrates his marginal benefit of staying open for each additional hour. Suppose that we observe Joe staying open 3 hours per day
If he is following the marginal principle, what must his marginal cost per hour be? A) $24 B) $32 C) $40 D) $48
The more available substitutes there are for a good, the
a. larger the number of consumers b. smaller the number of consumers c. smaller the supply side response d. more elastic the demand for that good e. less elastic the demand for that good
If equilibrium GDP exceeds full-employment GDP,
A. The difference is the inflationary GDP gap. B. Inventories will accumulate. C. The difference is the recessionary GDP gap. D. Leakages must be greater than injections.
According to the above table, if these two countries trade
A. the United States should specialize in tablets and Mexico should specialize in TVs. B. we cannot tell which country should specialize in which good without knowing the amount of labor utilized in each country. C. the United States should specialize in both tablets and TVs. D. Mexico should specialize in tablets and the United States in TVs.