Adoption of a guaranteed annual income with benefits (B) given by B = 20,000 -.5 (earnings) would be expected to reduce work effort by low wage workers because:
a. the income effect would outweigh the substitution effect of the plan.
b. the substitution effect would outweigh the income effect of the plan.
c. both substitution and income effects would operate to reduce work effort.
d. the plan would make working financially unattractive.
c
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Which of the following is not a tariff pattern of the major world traders?
A. overall tariff rates are relatively low B. tariffs are higher in agriculture than in other industrial sectors C. tariffs are higher to economically hostile countries D. commonality in the sectors they protect most
Because the United States does not have a comparative advantage in producing clothing, a fall in world prices increases imports and ________ U.S. production. U.S. consumers ________ and U.S. producers ________
A) decreases; gain; gain B) increases; gain; lose C) increases; gain; gain D) decreases; gain; lose E) decreases; lose; lose
When the price of a stock rises significantly higher than what can be justified by the dividends the firm can be expected to pay in the future, a(n) _____ is said to have occurred
a. stock market crash b. arbitrage c. stock market bubble d. bull run e. short sale
Economies of scale
A. do not arise in oligopolistic industries. B. can exist but fail to create barriers to entry in oligopolistic industries. C. can exist but are rare in oligopolistic industries. D. are commonplace and often a barrier to entry in oligopolistic industries.