A relatively high base income in a cash assistance program:
A. reduces the incentive to work.
B. increases the incentive to work.
C. does not affect the incentive to work.
D. will reduce the incentive to work through the substitution effect but will increase the incentive to work through the income effect.
Answer: A
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In the figure above, if the wage rate is $6 per hour, then the
A) firms' surplus is the area d + e + f. B) workers' surplus is the area a + b + c. C) deadweight loss equals zero. D) Only answers A and C are correct. E) Answers A, B, and C are correct.
A nonmonetary opportunity cost is called a(n) ________, while a cost that involves spending money is called a(n) ________
A) implicit cost; explicit cost B) normal rate of return; asset C) accounting profit; economic profit D) accounting cost; explicit cost
You are the chairperson of the Board of Governors of the Federal Reserve. You believe in a Keynesian model of the economy, and your goal is to keep the economy at the full-employment level of output
How would you respond (tightening or easing policy) in each of the following cases? (a) Government purchases increase (b) Corporate tax rates increase (c) Expected inflation increases (d) There's a beneficial oil price shock (and the LM curve shifts more to the right than the FE line)
Refer to Table 5.1. A risk-neutral individual making a decision solely on the basis of the above information would choose to major in
A) accounting. B) economics. C) English. D) political science. E) mathematics.