A favorable supply shock abroad would
a. increase U.S. imports and decrease aggregate demand.
b. decrease U.S. net exports and reduce aggregate supply.
c. decrease U.S. net exports and decrease national income.
d. increase U.S. net exports and increase aggregate demand.
c
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Assume that production from an electric utility caused acid rain. If the government imposed a tax on the utility equal to the marginal external cost of the acid rain, the government's action would
A) internalize the externality. B) externalize the externality. C) result in a marginal social benefit greater than the marginal cost of the electricity. D) be an example of supply-side economic policy.
Using the Lorenz curve, the degree of income inequality is measured by
a. The line connecting all points for which a given percentage of families receives exactly the cumulative percentage of income b. the distance of the Lorenz curve from the line of perfect equality c. the flat diagonal line that applies to a perfectly elastic demand curve d. the number of times the Lorenz curve crosses the line of perfect equality e. is derived by dividing the number of people below the poverty line by the total population
If the price elasticity of demand is equal to 1, then demand is unit elastic
a. True b. False Indicate whether the statement is true or false
The Temporary Aid to Needy Families (TANF) program:
A. requires that recipients participate in work activities. B. is associated with a decrease in single mothers working. C. has caused a rise in national welfare caseloads. D. was an important factor in the increase in poverty among children between 1993 and 2002.