An assistance program that reduces payments by less than a $1 for each $1 earned might still be a disincentive to work. But even assuming that people would prefer to work than to receive government assistance, what problem would still remain?
a. Those receiving both pay and government support would quickly become too wealthy to participate in the program.
b. Phasing support out more slowly would cost the government more than phasing it out quickly.
c. The working poor on government assistance would still never escape the poverty trap.
d. Phasing out support more slowly would reward the undeserving poor and the deserving poor equally.
b. Phasing support out more slowly would cost the government more than phasing it out quickly.
When the government phases out its support payments more slowly, the antipoverty program costs more money.
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The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for raising goats on a common pasture
A quota to prevent the overuse of the common pasture sets the number of goats to be raised equal to ________. A) 0 goats B) 40 goats C) 50 goats D) 55 goats
The invisible hand of the marketplace acts to allocate resources efficiently, but it does not necessarily ensure that resources are allocated fairly
a. True b. False Indicate whether the statement is true or false
When the value of a human life is calculated according to the economic contribution a person makes to society (as reflected in her income-earning potential), the troubling implication is that
a. it is possible for a retired or disabled person to have no value to society. b. economists are more valuable than entrepreneurs. c. retired people who volunteer in their communities are more valuable than physicians. d. all workers have equal value.
Suppose that in a closed economy GDP is equal to 11,000, taxes are equal to 1,000, consumption equals 7,500, and government purchases equal 2,000 . What is national saving?
a. -500 b. 500 c. 2,000 d. None of the above is correct.