The idea that transfer benefits to the poor encourage behavior that increases the risk of poverty is known as the
a. Samaritan's dilemma.
b. rule of inverse benefits.
c. implicit marginal tax law.
d. Smith paradox.
Answer: a. Samaritan's dilemma.
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If the United States negotiates a voluntary export restraint with international sugar producing nations, then
A) U.S. sugar buyers pay a lower price for sugar. B) U.S. sugar producers produce a smaller quantity. C) imports of sugar increase. D) the U.S. government collects less revenue than if it imposed a tariff on sugar. E) the foreign governments collect more revenue than if a tariff is imposed on sugar.
When a firm's long-run average cost is constant as output increases, the firm is experiencing constant returns to scale
Indicate whether the statement is true or false
If Happy Babies sells its baby formula in the United States for 30 percent less than it does in Canada, this is an example of ________.
A) peak-load pricing B) two-part pricing C) third-degree price discrimination D) second-degree price discrimination
If both the real interest rate and the nominal interest rate are 3 percent, then the:
A. inflation premium is zero. B. real GDP must exceed the nominal GDP. C. nominal GDP must exceed the real GDP. D. inflation premium also is 3 percent.