The official poverty level is based on pretax income including cash. Which of the following statements is correct regarding this official specification of poverty?
A. This is a good definition of poverty because it is easy to measure.
B. This is a good definition of poverty since it is made up of the income from productive resources.
C. This is not a good definition of poverty because our tax structure consists of the same tax rate for different income brackets
D. This is not a good definition of poverty because it does not include in-kind subsidies.
Answer: D
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Which of the following statements is correct?
a. In the new classical view, the money wage is assumed to adjust quickly to clear the labor market whereas in the Keynesian view, the money wage is sticky in a downward direction. b. In the new classical view, the money wage is sticky in a downward direction whereas the money wage is assumed to adjust quickly to clear the labor market in the Keynesian view. c. In both the new classical and the Keynesian views, the money wage is assumed to adjust quickly to clear the labor market. d. In both the new classical and the Keynesian views, the money wage is sticky in a downward direction.
Which of the following is a normative economic statement?
a. Congress should increase the legal minimum wage. b. An increase in the legal minimum wage would cause unemployment to increase. c. An increase in the legal minimum wage would cause unemployment to decrease. d. An increase in the legal minimum wage would lead to more equality in the distribution of income.
As the price of an existing bond increases,
A. The current yield decreases. B. There is increased risk that the U.S. Treasury will default on the bond. C. The coupon rate decreases. D. The par value decreases.
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
According to the graph shown, if the economy decides to impose a tariff, the government can expect to raise how much in government revenues?
A. $37,500. B. $19,500. C. $27,000. D. $34,500.