Suppose a poverty program has a basic benefit of $5,000 with zero deductions, and a marginal tax rate of 0.50. The breakeven level of income is
A. $2,500.
B. $10,000.
C. $15,000.
D. $25,000.
Answer: B
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The above figure shows Jane's budget line and two of her indifference curves. Which of the following happens to Jane's budget line if the price of a steak dinner fell?
A) It would rotate inward around the vertical intercept, 10 lobster dinners. B) It would rotate outward around the vertical intercept, 10 lobster dinners. C) It would rotate inward around the horizontal intercept, 20 steak dinners. D) It would rotate outward around the horizontal intercept, 20 steak dinners.
The money supply is ________ related to expected deposit outflows, and is ________ related to the market interest rate
A) negatively; negatively B) negatively; positively C) positively; negatively D) positively; positively
Wages and labor are inversely related for people who value leisure more than work
Indicate whether the statement is true or false
Assuming the market is in equilibrium in the graph shown with demand D and supply S1, total surplus is:
A. zero. B. less than total surplus when market is in equilibrium at D and S2. C. the same as total surplus when market is in equilibrium at D and S2. D. greater than total surplus when market is in equilibrium at D and S2.