"In-kind" rather than cash transfer payments are represented by
A. public assistance payments.
B. unemployment insurance benefits.
C. Social Security benefits.
D. food stamps.
D. food stamps.
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Where should a producer stop devoting more of his spending on labor if initially the MRP of the additional dollar spent on labor is higher than the MRP of the additional unit spent on tools?
A. MRP/$ of additional labor falls below MRP/$ of additional tools. B. MRP/$ of additional capital increases above MRP/$ of additional tools. C. MRP/$ of additional labor becomes equal to MRP/$ of additional tools. D. MRP/$ of the additional labor falls to zero.
Your friend Dimitre tells you that he thinks that his favorite basketball team has a 70% chance of winning the next game. This is an example of
A) an objective probability. B) a subjective probability. C) a risk-averse statement. D) Friedman-Savage preferences.
Answer the following statement(s) true (T) or false (F)
1. Chemical use is associated with a production externality. 2. In the presence of a negative consumption externality, the MSB lies below the MPB. 3. To internalize the consumption externality of pesticide use, a product charge can be implemented as a unit tax. 4. If a unit tax is used to internalize the consumption externality of chemical use, it achieves efficiency if it is set equal to the MSB at the efficient output level.
Which of the following outstanding debts should Jillian pay off first?
A) A three year loan of $5,000 at 0 percent a year from her mom. B) A $2,000 debt on a credit card charging 18 percent annually. C) A home equity loan of $10,000, which has an effective rate of 6 percent after her tax advantages are taken into account. D) A student loan of $40,000 with a fixed rate of 4 percent.