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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The World Bank
A) extends long-term loans for capital investment projects to developing nations. B) mediates contracts regarding minimum prices for various globally-traded commodities. C) determines the labor force participation rate in each of its member nations. D) determines the price level in each of its member nations.
In the long run, changes in prices of goods and services paid by consumers have no effect on:
A. the macroeconomy. B. aggregate supply. C. aggregate demand. D. All of these are true.
Select the graph above that best shows the change in the market specified in the following situation: In the market for chicken, when the price of a substitute, such as beef, decreases.
Graph A Graph B Graph C Graph D
A surprising outcome of the Rock-Paper-Scissors game is that
A) it is a clear example of a first mover advantage. B) there is no pure-strategy Nash equilibrium. C) it is best not to play the game. D) it is a good way to determine who goes first in a sequential move game.