The families that applied for the Moving to Opportunity program wee assigned into three groups. Which of the following does not describe one of those groups?
A) People in one group received nothing but were able to live in public housing with their rents fixed at 30% of their household incomes.
B) People in one group were moved to housing in neighborhoods with poverty rates of less than 10%, and those people received vouchers to pay for 100% of their rent.
C) People in one group received a voucher they could use to help pay for private housing, with the voucher paying any rent beyond 30% of their household incomes.
D) People in one group received a voucher they could use to help pay for private housing, with the voucher paying any rent beyond 30% of their household incomes, but the voucher was good only if the family moved to a neighborhood with a poverty rate of less than 10%.
B
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According to the quantity theory of money, if the money supply grows at 20 percent and real GDP grows at 5 percent, then the inflation rate will be
A) 15 percent. B) 20 percent. C) 25 percent. D) 100 percent.
A cooperative equilibrium results when firms
A) choose a strategy by random chance. B) choose the best strategy regardless of what other players do. C) choose the strategy that minimizes the payoff to other players. D) choose the strategy that maximizes the total game payoff.
A barber currently cuts hair for 50 clients per week and earns a profit. He is considering expanding his operation in order to serve more clients. Should he expand?
a. Yes, because cutting hair is profitable. b. No, because he may not be able to sell more services. c. It depends on the marginal cost of serving more clients and the marginal revenue he will earn from serving more clients. d. It depends on the average cost of serving more clients and the average revenue he will earn from serving more clients.
The interest rate effect and real wealth effect are important because they help to explain
A. why demand management policy cannot be used effectively when aggregate supply shifts to the left. B. the downward-sloping nature of the aggregate demand curve. C. why equilibrium real GDP rarely coincides with potential real GDP. D. why the aggregate demand curve may shift inward or outward.