The following statements are accurate except
a. Social Security represents in-kind transfer payments.
b. The percentage of people below the poverty line fell dramatically between 1960 and 1970
c. The negative income tax was designed to preserve incentives to work.
d. Income inequality in the U.S. is less unequal than the inequality of wealth.
e. The Gini coefficient measures income distribution.
A
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In the United States, which part of government investigates claims of subsidies or dumping?
What will be an ideal response?
The short-run aggregate supply curve can slope upward because
A) prices are fixed in the short run. B) wages adjust immediately to changing economic circumstances. C) producers have misperceptions about the aggregate price level. D) prices adjust instantaneously.
According to classical economists, if interest rates are flexible,
A) saving will equal investment. B) saving may be greater than investment. C) saving may be less than investment. D) any of the above
Juanita is spending her entire income on goods X and Y. Her marginal utility from the last unit of X is 50 and the marginal utility from the last unit of Y that she consumes is 100. Juanita's utility is only maximized if
A. the price of good X is twice that of good Y. B. the price of good Y is twice that of good X. C. the prices of X and Y are the same. D. We cannot determine whether Juanita is maximizing her utility.