Which of the following represents a difficulty related to setting the national poverty line in the United States?
a. Many people around the world are poorer than Americans.
b. It is impossible to distinguish the poverty line from the poverty rate.
c. Social programs mean that nobody in the United States is living in poverty.
d. Median income and cost of living vary in different parts of the country.
d. Median income and cost of living vary in different parts of the country.
The concept of a poverty line raises many tricky questions. In a vast country like the United States, should there be a national poverty line? According to the Federal Register, the median household income for a family of four was $102,552 in New Jersey and $57,132 in Mississippi in 2013, and prices of some basic goods like housing are quite different between states.
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Mexico pegged its exchange rate to the U.S. dollar in the 1980s
A) to maintain a similar unemployment rate to the United States B) in an attempt to abandon the peso and switch to U.S. dollars as currency. C) to signal investors that Mexico was serious about controlling inflation. D) to discourage foreign investment.
Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. Which of the following statements is true?
A. The United States has a comparative advantage in the production of shoes. B. Canada has a comparative advantage in the production of shoes. C. Comparative advantage doesn't exist in this scenario. D. Both countries have a comparative advantage in the production of shoes.
Consumers increased consumption by a relatively small amount in 2008 and 2009 because they believed the tax cuts were temporary
a. True b. False Indicate whether the statement is true or false
Suppose a company increases production from a point where marginal cost equals average total cost to a point where marginal revenue and marginal cost are equal. Is it a good idea for the company to do this? Why?
A. No, average total costs have increased which means the company is not minimizing losses. B. Yes, because average variable costs are always less than average total costs. C. No, the previous level of output was the most efficient because it had the lowest average total cost. D. Yes, even though the previous level of output had minimized the average total cost, there was still profit to be earned by producing additional units.