Increases in the minimum wage are intended to raise the incomes of low-income workers. Many economists favor a different policy to achieve this goal, a policy that avoids the deadweight losses that result from the minimum wage. What is this policy?
A) distribution of food stamps to low-income consumers
B) distribution of vouchers that can be used for rent or mortgage payments
C) the Alternative Minimum Tax
D) the earned income tax credit
Answer: D
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Gross domestic product is a measure of the total value of all
A) sales in an economy over a period of time. B) consumer income in an economy over a period of time. C) capital accumulation in an economy over a period of time. D) final goods and services produced in an economy over a period of time.
The circular flow model shows how ______ interact in markets
a. workers and firms b. firms and households c. firms and banks d. banks and households e. households and government
Evidence shows that the Chinese yuan was substantially overvalued against the U.S. dollar in mid-2005.
Answer the following statement true (T) or false (F)
What might be the short run impact of a completely open immigration policy that allowed labor to move freely across the U.S. border?
A. A decrease in real GDP growth caused by an increase in the labor force B. An increase in real GDP growth caused by an increase in the labor force C. An increase in real GDP growth caused by an increase in demand for public goods D. A decrease in real GDP growth caused by an increase in demand for public goods