The negative income tax has little support among economists because it distorts incentives to work.
Answer the following statement true (T) or false (F)
False
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Using the table above, if the current market value of the dollar is 125 francs
A) investor A holds dollars, but B and C hold francs. B) investor A holds francs, but B and C hold dollars. C) all three investors hold francs. D) all three investors hold dollars.
Which of the below is true? a. A price ceiling reduces the quantity exchanged on the market, but a price floor increases the quantity exchanged on the market. b. A price ceiling increases the quantity exchanged on the market, but a price floor decreases the quantity exchanged on the market. c. Both price floors and price ceilings reduce the quantity exchanged in the market
d. Both price floors and price ceilings increase the quantity exchanged in the market.
Which of the following statements best summarizes the essence of public choice analysis? a. Public choice analysis applies economic principles to political science issues
b. Public choice analysis applies political science principles to traditionally economic issues. c. Public choice analysis assumes that government leaders are primarily motivated by what is best for the community, unlike private interest groups. d. none of the above
Figure 7-11
Refer to . As price falls from PA to PB, we could use the three demand curves to calculate three different values of the price elasticity of demand. Which of the three demand curves would produce the smallest elasticity?
a.
D1
b.
D2
c.
D3
d.
All of the above are equally elastic.