Some economists argue that the official poverty figures overstate poverty in this country. Why?
What will be an ideal response?
Official poverty figures do not include in-kind subsidies, which would lift some people above the official poverty cutoff. They also do not include income from the underground economy. Someone who works for cash and does not report it to the government has a higher income than official statistics indicate.
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The difference between voluntary and involuntary unemployment is that:
a. involuntary unemployment exists when wages are high. b. voluntary unemployment exists in equilibrium. c. voluntary unemployment falls as wages rise. d. both b and c. e. all of the above.
Economic theory is necessary and extremely important because of its relationship to economic policy.
Answer the following statement true (T) or false (F)
Most economists believe that
a. speculation on financial markets reduces their efficiency and should either be abolished or heavily regulated. b. speculation on financial markets does not need to be regulated because it has been largely eliminated by regulations on program trading. c. speculation socially benefits financial markets but harms nonfinancial markets. d. speculation helps both financial and nonfinancial markets function more efficiently.
The owners of which type of firm have the least liability?
A. Limited partnership. B. Proprietorship. C. Partnership. D. Corporation.