Which of the following is not one of the side effects economists have found in programs to redistribute income?
A. The incentive effects of distributing money may cause people to make themselves look needier than they really are.
B. The incentive effects of a tax may result in a switch from labor to leisure.
C. The effects of taxes may include attempts to avoid or evade taxes, leading to a decrease in measured income.
D. The incentive effects of distributing money may cause people to avoid government assistance programs.
Answer: D
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When Safeway supermarkets in the United States buys strawberries from Mexico
A) it uses dollars to pay Mexican farmers. B) it uses pesos to pay Mexican farmers. C) it may use any currency it chooses. D) the transaction shows up in the U.S. capital account.
An income statement shows a firm's revenue, costs, and profit
A) since the firm has been in operation. B) for the firm's fiscal year. C) only if the firm is earning an accounting profit. D) for a particular day.
In the short run, suppose average total cost is a straight line and marginal cost is positive and constant. Then, we know that:
A) marginal cost is less than average total cost. B) average total cost is positive and constant. C) average total cost equals marginal cost. D) A and B are correct. E) B and C are correct.
A natural monopoly is likely to arise when:
a. the government restricts entry through licensing b. patents provide protection of intellectual property. c. economies of scale exist over the relevant range of demand. d. a firm controls a crucial input to production.