With a negative income tax featuring an $8,000 minimum level of income and a 20% tax rate, a household earning $8,000 dollars would receive a subsidy of:
a. zero
b. $1,600
c. $6,400
d. $8,000
c
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In the HO model, the production possibility frontier is bowed out due to the assumption of
A) identical tastes. B) different factor intensities in the production of the two goods. C) increasing returns to scale. D) Two of the above.
Increases in the marginal propensity to consume (MPC), other things constant, _____
a. increase the value of the multiplier b. decrease the value of the multiplier c. increase the marginal propensity to save d. shift the aggregate expenditure curve downward e. cause a downward movement along the aggregate expenditure curve
A firm's producer surplus equals its:
A. profit less its avoidable costs. B. revenue less its avoidable costs. C. profit less sunk costs. D. revenue less sunk costs.
A measure comparing the prices of consumer goods and services that a household purchases to the prices of those goods and services purchased in a base year is the
a. Consumer Price Index b. Consumer Deflator Index c. GDP Price Deflator d. Producer Price Index e. Consumer Price Deflator