Compared with a low benefit reduction rate, a relatively high benefit reduction rate in a cash assistance program:
A. reduces the incentive to work.
B. increases the incentive to work.
C. does not affect the incentive to work.
D. will reduce the incentive to work through the substitution effect but will increase the incentive to work through the income effect.
Answer: A
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The consumer Wi-Fi-service-service providers' market is best described as a
A. monopoly. B. monopolistic competition. C. oligopoly. D. perfectly competitive market.
Given the data in the above table, income of $13, a price of $1 for a bottle of water and $2 for a hamburger, what is the marginal utility per dollar spent on water and on hamburgers when the consumer is in consumer equilibrium?
A) 20 units of utility per dollar spent B) 10 units of utility per dollar spent C) 5 units of utility per dollar spent D) 1 unit of utility per dollar spent
Advocates of steel tariffs to protect U.S. steel firms realize that when imposing such tariffs, the gains of firms are outweighed by the losses to consumers.. This implies that
A) such advocates value producer surplus more than consumer surplus. B) such advocates want to help consumers. C) such advocates value consumer surplus more than producer surplus. D) such advocates value producer surplus and consumer surplus equally.
The income approach to calculating GDP:
A. will generate the same answer as using the expenditure approach. B. is less accurate than using the expenditure approach. C. is more accurate than using the expenditure approach. D. is simpler to calculate than the expenditure approach.