Suppose that in a certain society $10,000 is the official cut-off of income for the poor. This means that any person making less than $10,000 is considered poor. Suppose further that there are three people in this society: Randy, Marlon, and Tito, with incomes of $9,900, $9,900, and $5,000, respectively.
A) How many people are in poverty?
B) How much income would it take, on average, to lift every poor person out of poverty?
C) What if some policy caused $200 to be taken from Tito and given to Randy. How many
people are in poverty now? How much income would it take, on average, to lift every poor
person out of poverty?
A) Three people are in poverty.
B) It would take $1,733.33, on average, to lift them out.
C) Two people are in poverty but it would now take $2,650.00, on average, to lift them out.
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A) a surplus equal to 3,000 apartments B) a shortage equal to 3,000 apartments C) a shortage equal to 250 apartments D) nothing because the rent ceiling has no effect on the equilibrium price and quantity
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What will be an ideal response?
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Indicate whether the statement is true or false
Compared to an economy that uses a medium of exchange, in a barter economy
A) transaction costs are higher. B) transaction costs are lower. C) liquidity costs are higher. D) liquidity costs are lower.