The incentive to work is an ingredient of the negative income tax because
a. if families do work, they will be eliminated from the program
b. if families don't work, they will be eliminated from the program
c. the more income earned in the workplace, the higher the family's after-tax income
d. the more income earned in the workplace, the higher the payment from the government
e. the amount earned in the workplace is not subject to income taxes
C
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Market failure: A case in which the __________ of govt intervention causes too much/not enough of a good to be produced at a ______ which is not ________________
Fill in the blank(s) with the appropriate word(s).
The theory of efficient markets suggests that:
A) systemically important financial institutions are more likely to fail. B) long-term investments by banks are more profitable than short-term investments. C) interest rates and inflation rates are inversely related. D) all movements in stock markets are based on rational appraisals of new information.
Models are simplifications that are used to observe the workings of a system.
Answer the following statement true (T) or false (F)
Under the cartel, the individual firm's economic profit is (assuming that it wants to cheat on its quota) 
Figure 42.2
A. zero. B. the smaller of the dashed-line boxes. C. between the size of the two dashed-line boxes. D. the larger of the dashed-line boxes.