The Earned Income Tax Credit avoids the poverty trap by doing which of the following?
a. Lowering benefits by 21.06 cents for every dollar earned above $17,530
b. Insisting people work in order to claim the benefit
c. Allowing workers to keep their benefits no matter how high their income increased
d. Increasing benefits by 21.06 cents for every dollar earned above $17,530
a. Lowering benefits by 21.06 cents for every dollar earned above $17,530
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Refer to the figure above. Total welfare can be increased by ________
A) increasing output above Q1 B) reducing output below Q1 C) lowering the market price below P1 D) increasing the market price above P2
Fresno County, California is the largest agricultural producing county in the country and almonds are an important crop with more than 99,000 acres harvested. Each acre produces about a ton of almonds and sold at a price of $4300 a ton
The Sagardia Brothers grew 600 acres of almonds. What would happen if the Sagardia Brothers priced their almonds at $4500 a ton? A) Profits will be higher than when they sell them at the lower price. B) The quantity sold will be higher. C) They will not sell any almonds. D) They will sell fewer almonds, but profits will be higher.
Suppose that two poker players believe that they are superior players to the rest of the people at their table. Further suppose that the two players make an agreement to concede hands to each other in order to drive the other players from the game first. Economists would model such behavior as
a. monopolistic competition. b. game theory. c. predatory pricing. d. a dominant strategy.
The total demand for wheat in the U.S. is given by Qd = 1,750 ? 130P. Domestic supply is given by, Qs = 1,000 + 170P. Price is measured in dollars/ton and quantity is measured in thousands of tons. The equilibrium price and quantity of wheat are:
A. $2.50 a ton and 1,425 thousands of tons, respectively. B. $2.50 a ton and 2,075 thousands of tons, respectively. C. $4.78 a ton and 1,813 thousands of tons, respectively. D. $4.78 a ton and 1,129 thousands of tons, respectively.