If the benefits from an antipoverty program are phased out as an individual's income increases, the program will
a. cost the government more than a program that benefits everyone.
b. increase the effective marginal tax rate that the poor face.
c. encourage greater work effort from the poor.
d. lead to an excess supply of labor among unskilled workers.
Ans: b. increase the effective marginal tax rate that the poor face
You might also like to view...
Consider a world with two countries and two goods. Under which of the following conditions does comparative advantage NOT exist?
A) One country can produce both goods more cheaply than the other country. B) One country has more productive resources or inputs than another country. C) The opportunity cost of producing each good is the same in each country. D) One country has an absolute advantage in producing one good while the other country has an absolute advantage in producing the other good.
The cross-price elasticity of demand between rifles and bullets is likely to be
a. negative because the goods are complements b. positive because the goods are complements c. negative because the goods are substitutes d. positive because the goods are substitutes e. 0 because the goods are not substitutes
Austrian economists
A) supported TARP legislation. B) believe that no bank is to big to fail. C) and Keynesian economists have consistent views concerning the role of government. D) none of these choices.
According to the text, which of the following is a determinant of macroeconomic performance?
A. Prices B. Policy levers C. The unemployment rate D. The international value of the dollar