The largest component of national income is
A) compensation of employees.
B) rental income.
C) corporate profits.
D) proprietors' income.
A
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Consider a worker who consumes a composite consumption good (on the vertical axis) and leisure hours (on the horizontal axis).
a. Suppose the worker has 80 hours of leisure per week and can earn a wage of $50 per hour. Illustrate the worker's weekly budget constraint. b. In order to close the deficit, the government introduces a broad-based consumption tax on all consumer goods -- raising the price of the consumption good by 20%. Illustrate the new budget constraint faced by our worker. c. On your graph, indicate the level of tax revenue raised by this broad-based consumption tax. d. Using your graph, discuss why this tax is inefficient. e. In this model is there any difference between the consumption tax and a wage tax? What is different about the real world that would change your conclusion about this? What will be an ideal response?
"Tariffs today in the United States are much higher than in the past." Is the previous statement correct or incorrect?
What will be an ideal response?
Health insurance is subject to
a. Both asymmetric information problems and moral hazard problems b. Neither asymmetric information problems nor moral hazard problems c. Asymmetric information problems but not moral hazard problems d. moral hazard problems but not asymmetric information problems
List the three major problems in using the CPI as a measure of the cost of living