Which of the following statements is not correct?
a. An advantage of the Earned Income Tax Credit (EITC) is that it targets the working poor better than the minimum wage because it does not benefit teenagers from middle-class families who work summer jobs at the minimum wage.
b. A disadvantage of in-kind transfer programs such as food stamps is that they force recipients to purchase from a restricted set of items which may not include things that the poor need the most such as diapers or cleaning supplies.
c. A disadvantage of minimum wage laws is that they are expensive for state and local governments to fund.
d. Effective minimum wage laws create a surplus of labor.
c
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In deriving LM curves, holding the real money supply constant while raising real GDP causes us to
A) trace up along an LM curve. B) trace down along an LM curve. C) shift the LM curve to the right. D) shift the LM curve to the left.
The sole owner of a unincorporated business unable to pay its debts:
a. may be sued by the people to whom the business owes money b. may be forced to pay them out of his own bank account c. may be forced to sell his personal property to pay those debts d. all of these are correct
Surveys of consumers regarding labor standards indicate that they are willing to pay:
a. a large amount for a large improvement in working conditions. b. a small amount for a large improvement in working conditions. c. nothing for a large improvement in working conditions. d. a small amount for a small decline in working conditions.
State the law of diminishing returns. How do diminishing returns differ from diseconomies of scale? Be sure to define diseconomies of scale in your answer
What will be an ideal response?