In response to a negative income tax, the substitution of leisure for income could be great enough to reduce total income
a. True b. False
a
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When Airbnb customers in Malibu start paying hotel taxes, this will have the potential to raise the equilibrium price in this market and, therefore, decrease efficiency. This would have a tendency to
A) decrease producer surplus and decrease deadweight loss. B) decrease consumer surplus and increase deadweight loss. C) maximize consumer surplus and minimize producer surplus. D) increase consumer surplus and increase producer surplus.
A country simultaneously raises tariffs on manufactured goods and overvalues the exchange rate. Why might these seemingly contradictory policies be pursued together?
What will be an ideal response?
Faced with a decrease in the demand for its product, a monopolist will lower prices and maintain output at its previous level if
A) the gain in profit is less than the increase in real wages paid. B) the gain in profit is less than the decrease in real wages paid. C) the gain in profit is less than the menu costs. D) the gain in profit is greater than the increase in menu costs.
If employers were made responsible for injuries suffered by employees while working at home:
A. there might be an adverse selection problem since employers have better information about the safety conditions of their employees than the employees have themselves. B. employers would never permit employees to work at home. C. there might be an adverse selection problem since employees have better information about the safety conditions of their own homes than employers do. D. more employees would be able to work safely at home.