Suppose a negative income tax program is established at 25 percent, and a poverty threshold minimum of $15,000 is guaranteed for a family of four. What is the highest income a family could earn in the workplace before being cut out of the government program?
a. $20,000
b. $15,000
c. $18,750
d. $60,000
e. $10,000
D
You might also like to view...
One difference between monopolistic competition and pure competition is that
A. products may be homogeneous in monopolistic competition. B. there is some control over price in monopolistic competition. C. firms differentiate their products in pure competition. D. monopolistic competition has significant barriers to entry.
The interest rate is the price borrowers pay to borrow money. Key interest rates are controlled by the Federal Reserve System. If the Federal Reserve acts to reduce interest rates, economists would expect the quantity of money supplied to
A. increase. B. decrease. C. not change. D. Uncertain-economic theory has no answer to this question.
Suppose the optimal amount of X is 100 units and that the market provides 123 units. This situation is descriptive of
A. externality provision. B. market failure. C. asymmetric information. D. a public goods problem. E. the free-rider dilemma.
Cross-price elasticity of demand would measure which of the following examples?
a. the effect a decrease in the price of marshmallows has on the supply of butter b. the effect an increase in the price of soap has on the sale of this product c. the effect an increase in the price of printers has on the sale of print cartridges d. the effect a decrease in the price of pillows has on the sale of this product