Which of the following is true of transfer programs?
a. They involve redistributing income from lower-income individuals to higher-income individuals.
b. They place a high implicit tax on work
c. They increase the opportunity cost of leisure.
d. They indirectly help in decreasing the unemployment rate in an economy.
e. They result in an increased productivity of labor and a rise in the total output of an economy.
b
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If a consumer's budget line for food (F) and shelter (S) is represented as F = 250 - 5S, and 50 units of food is purchased, how many units of shelter can be purchased at most?
A) 0 B) 40 C) 60 D) 80
In the 1850s, the growth rate of real wages in U.S. manufacturing slowed to nearly zero because
a. the demand for manufacturing labor and the supply of manufacturing labor increased by approximately the same amount during this period. b. the demand for manufacturing labor and the supply of manufacturing labor decreased by approximately the same amount during this period. c. the demand for manufacturing labor increased more rapidly than the supply of manufacturing labor during this period. d. the demand for manufacturing labor increased while the supply of manufacturing labor decreased during this period.
A common solution to monopoly in European countries is public ownership
a. True b. False Indicate whether the statement is true or false
In deciding how much money to hold, individuals
A) must understand the velocity of the money and its role in the economy. B) compare the inflation rate with the market interest rate. C) base their decisions on what others are doing. D) evaluate the relative costs and benefits of holding money versus other assets.