Hector's wealth is zero, he expects to work for another 45 years at a constant salary of $80,000 and live for another 60 years. Yearly taxes are $20,000, and Hector received a one-time tax rebate of $5,000 during his first year of work
If Hector completely smooths consumption over his lifetime, his annual consumption is A) $37,516.67.
B) $44,916.67.
C) $45,083.33.
D) $60,111.11.
C
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If Tony receives a pay raise and the price effect outweighs the income effect on his labor supply decisions, he will:
A. work more hours. B. work less hours. C. work the same hours no matter what. D. quit and not work at all.
Which of the following most closely defines the concept of poverty?
a. Poverty means that a person is morally bankrupt and thus is unworthy of social assistance. b. Poverty is a relative term describing the financial insolvency of a person. c. Poverty is a relative term and is based on the level of unemployment in the economy. d. Poverty is a relative term and is based on income considerably below the average in society.
What does research into new technologies lead to?
a) It provides positive externalities because it creates knowledge others can use. b) It results in negative externalities because too many resources are used for the small benefits received by society. c) It results in negative externalities because government funding for research leads to cuts in government spending in other areas. d) It provides positive externalities because it increases profits for the company that receives government funding for research.
Suppose that a tire factory produces $825,000 of output and causes $70,000 worth of pollution as a result of production. The tire factory's official contribution to GDP would be ________ and its overall contribution to society would be ________.
A. $825,000; $895,000 B. $895,000; $825,000 C. $825,000; $755,000 D. $755,000; $825,000