The mythical country of Quitar has just established a policy to give very generous in-kind benefits to the nation's poor, currently defined as those earning less than $10,000 a year. Several years later, the poverty rate has not fallen. Why not?
If poverty is only measured based on cash income, these benefits would not serve to lower its incidence. In fact, if these benefits reduce incentives to earn monetary income, we might expect poverty to rise.
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Which of these countries have higher levels of human capital?
A. Asian countries B. European countries C. Developing countries D. Developed countries
What must happen to the market price in order for a shortage to be eliminated?
A. Price must fall. B. Price must rise. C. Price must stay the same. D. Price may rise or fall depending on the size of the shortage.
The antitrust laws are based on the:
A. creative destruction view of competition. B. idea that competition leads to greater economic efficiency than does a monopoly. C. view that nonprice competition should be strictly regulated by government. D. view that all negative externalities should be eliminated by government action.
If the price of hybrid cars declines by 70 percent, the quantity demanded will _____ and the demand for conventional gasoline engine automobiles will _______.
Fill in the blank(s) with the appropriate word(s).