The newest evidence on Head Start suggests that it is
A. modestly effective for specific populations in the long run.
B. enormously effective in the long run.
C. curiously counterproductive in the long run.
D. completely irrelevant for all populations in the long run.
Answer: A
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The above table gives the demand schedule for Billy Bob's BBQ ribs. If the price of a pound of ribs falls from $3 per pound to $1 per pound, what is the change in Billy Bob's total revenue?
A) $42 B) $24 C) -$2 D) -$24
Under fixed exchange rates, domestic asset transactions by the central bank
A) can be used to alter the level of foreign reserves but not to affect the state of employment and output. B) cannot be used to alter the level of foreign reserves but only to affect the state of employment and output. C) can be used to alter the level of foreign reserves and to affect the state of employment and output. D) can be used to alter the domestic money supply and the level of foreign reserves. E) can raise output to full-employment level.
Which of the following statements about barriers to entry is false?
A) They restrict entry into industries in which positive economic profits are being made. B) They are somewhat lessened by the existence of patents. C) They may be due to legal impediments such as licenses. D) They may be due to a single firm controlling access to a natural resource or production process.
To set a tax rate at the appropriate level to maximize its tax revenues, a government must engage in
A) static tax analysis. B) dynamic tax analysis. C) debt-free tax analysis. D) ad valorem tax analysis.