Because the benefits distributed under TANF and Medicaid are essentially controlled by the states, critics argue that
A. recipients can receive benefits for a longer time period than if the programs were controlled by the federal government.
B. people receiving benefits have greater incentive to work more.
C. poor people with equal needs receive unequal benefits.
D. a negative income tax controlled by the federal government is less efficient.
Answer: C
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Private producers have no incentive to provide public goods because
A) they cannot avoid the tragedy of the commons. B) production of huge quantities of public goods entails huge fixed costs. C) once produced, it will not be possible to exclude those who do not pay for the good. D) the government subsidy granted is usually insufficient to enable private producers to make a profit.
Which of the following transactions would be governed by the rules of the EEC?
a. Russia's trade with Canada b. the U.S.'s trade with Russia c. Brazil's trade with Bolivia d. France's trade with Greece e. China's trade with Japan
The Lucas critique focuses specifically on:
A. the role that economic policymaking has on people's economic behavior. B. the relationship between Fed policy and the money supply. C. the inability to measure economic performance accurately. D. the moving away from fixed exchange rates to flexible exchange rates.