Describe the advantages that a negative income tax has over other programs that have the same purpose
First, a negative income tax is less costly to administer than other poverty-fighting programs because it can be administered routinely by the IRS. Second, it avoids the stigma of handouts. Finally, it actually creates an incentive to work because the more income earned, the higher is the household's after-tax income.
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If smartwatches are considered substitutes for smartphones, the decline in the price of smartphones would, all else equal
A) increase the quantity of smartwatches demanded. B) decrease the quantity of smartwatches demanded. C) increase the demand for smartwatches. D) decrease the demand for smartwatches.
Refer to the below graph. If the MRC being horizontal means that:
A. The firm could hire addition labor without changing the wage rate
B. The firm is selling its product in a purely competitive market
C. The firm has a constant total cost of production
D. The firm has perfectly elastic labor demand
By external balance, most economists mean
A) avoiding excessive imbalances in international payments. B) balance between exports and imports. C) balance between the trade and service accounts. D) what amounts to fixed exchange rates. E) imbalance in internal transactions.
Which of the following probably best explains why trade restrictions are imposed even if the costs to consumers are greater than the benefits to protected industries?
a. Indifference on the government's part to the interests of domestic workers b. A desire to make other countries suffer c. Successful lobbying by consumers d. Successful lobbying by employers and workers e. The government's preference to safeguard the interest of the producers at the expense of the consumers