Suppose the average value of in-kind transfers increases by $2,000 from 2013 to 2014 . The poverty rate
a. is more likely to understate the true level of poverty.
b. is more likely to overstate the true level of poverty.
c. will increase by $2,000 divided by the poverty level.
d. Both b and c are correct.
b
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Assume foreign beer is a normal good. If the incomes of demanders decreases,
A) the demand for foreign beer will increase. B) the quantity supplied of foreign beer will increase. C) the market output of foreign beer will increase. D) all of the above will occur. E) none of the above will occur.
Comment on the following statement: "An increase in the wage always leads to an increase in the quantity of labor supplied."
What will be an ideal response?
Refer to Figure 9-4. Suppose the government allows imports of leather footwear into the United States. What will be the quantity of imports?
A) Q0 B) Q1 C) Q2 D) Q2 - Q0
Based on the table showing a summary of fiscal policy tools, one tool for dealing with a negative RGDP growth rate is ______.
a. decreasing government transfer payments
b. increasing taxes
c. decreasing government purchases
d. increasing government purchases