Leo is a welfare recipient who qualifies for two means-tested cash benefit programs. If he does not earn any income, he receives $225 from each program. For each dollar he earns (which his employer is required to report to the welfare agency), his benefit from each program is reduced by 75 cents until the benefit equals zero. If Leo only values income and not how the income was acquired, then he must earn ________ to be as well off as when he earns nothing and receives benefits.
A. $350
B. $450
C. $225
D. $300
Answer: B
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Recall the Applied Perspective concerning Morocco, Coca-Cola, and Multipliers. Coca- Cola's decision to set up a bottling plant in Tangier has
a. created upstream and downstream linkages that accounted for 0.7 percent of Morocco's 1999 GDP b. had minimal impact on Morocco's economy c. created a backlash against the Westernization of the Moroccan economy d. created little new employment since the bottling plant is highly automated e. resulted in the bankruptcy of local, traditional, soft drink manufacturing firms
One complication in the process of reducing inflation by creating recessions is that the price level
a. adjusts more quickly to recessionary gaps than to inflationary gaps. b. does not apply as it does in inflationary gaps. c. always rises. d. rarely falls.
When foreigners buy U.S. dollars because they are a more stable currency than the currencies in their countries, they are generating a
A. Supply of U.S. dollars and a demand for a foreign currency. B. Supply of U.S. dollars and a supply of a foreign currency. C. Demand for U.S. dollars and a demand for a foreign currency. D. Demand for U.S. dollars and a supply of a foreign currency.
Which of the following countries had the highest fertility rate in 2012?
A. Japan B. China C. Germany D. The United States