Exhibit 12-9 Negative Income Tax
?
As shown in Exhibit 12-9, a family of four with an income of $20,000 receives ____ from the government:
A. zero payment
B. the break-even income of $20,000
C. a $10,000 payment
D. a $10,000 tax deferment
Answer: A
You might also like to view...
"Every point on a demand curve represents a consumer equilibrium in the indifference curve model." Explain why the previous statement is correct or not
What will be an ideal response?
Both classicals and Keynesians agree that policymakers
A) can exploit the Phillips curve in the short run. B) cannot exploit the Phillips curve in the short run. C) can keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation. D) cannot keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation.
The positive slope of the per-worker production function illustrates the relationship between per-worker output and ________
A) diminishing marginal returns B) the capital-labor ratio C) the rate of inflation D) the rate of unemployment
In an attempt to boost enrollment, in January, 1996, a private college in Iowa offered free tuition for graduating high school seniors from the county where it is located. For students who accepted the offer, how did this offer affect the opportunity cost of attending college?
a. The opportunity cost did not change, since lost earnings were still a factor. b. The opportunity cost became zero for the typical student. c. The opportunity cost was very low, because the only cost was for books and supplies. d. The opportunity cost did not change, since tuition was not a factor in computing opportunity cost. e. The opportunity cost was lower than if tuition was charged, but there was still a cost.