Assume that the government provides a cash transfer to each family regardless of their market earnings. Given this transfer, which of the following hypotheses about labor supply is correct?
a. Labor supply will increase because the income effect outweighs the substitution effect.
b. Labor supply will increase because leisure is an inferior good.
c. The income effect will reduce labor supply; there is no substitution effect.
d. Labor supply will be constant since wages are unaffected.
c
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Borrowing VCU3 from an online company cause the nation's:
a. Monetary base to fall. b. M2 money supply to rise. c. M2 money multiplier to fall. d. Monetary base to remain the same.
The United States has greater income disparity than
a. Japan. b. India. c. South Africa. d. Both a and b are correct.
In December 2010, Kansas had a severe ice storm that caused electrical blackouts. The Fictitious Portable Generator firm of Lawrence had several portable generators that could be used by homeowners to provide electricity
Which of the following would be the fair-rules way to provide them? A) The government confiscates the generators owned by Fictitious and distributes them. B) Fictitious is forced by the state to rent the generators at half the normal rate. C) The state sets up a lottery to determine who rents the available generators at the normal rate. D) Fictitious rents generators at the equilibrium market price. E) Fictitious follows government commands about who gets to use the generators.