Suppose a negative income tax program is established at 25 percent, and a poverty threshold minimum of $15,000 is guaranteed for a family of four. If this family earned $50,000 in the workplace, the government payment to the family under this program would equal
a. $2,500
b. $1,000
c. $10,000
d. $1,500
e. zero
A
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Compared to private bargaining, using eminent domain to acquire land generally
A) keeps negotiation costs low. B) is more time consuming and less successful. C) reduces cooperative surplus. D) is frowned upon by the government.
If a firm’s marginal profit is negative, it should reduce its output level.
Answer the following statement true (T) or false (F)
In economics, interest refers to all of the following EXCEPT
A. the return paid to the owners of capital. B. the payment for current rather than future command over resources. C. the cost of obtaining credit. D. the return paid to owners of financial institutions.
In the United States the difference between union and non-union wages
A) does not exist. B) currently averages about more than 100 percent. C) has been narrowing. D) tends to fall during a recession because union members typically have shorter-term contracts than do nonunion employees.