Economists believe that people respond to incentives in predictable ways. Therefore, if the government imposed a tax on each child born, you would expect that:
a. families would have the same number of children, but wait longer to begin having them.
b. more children would be born, but spaced further apart
c. more children would be adopted.
d. fewer children would be born.
d
You might also like to view...
Which of the following has also been called the command and control approach?
A. Direct controls B. Voluntary compliance C. Tradable emissions permits D. Taxes on pollution
Passive macroeconomic policy would rely on natural market forces and automatic stabilizers to close an expansionary gap
a. True b. False Indicate whether the statement is true or false
Suppose studies showed that 12 percent of all teens choose to participate in underage drinking. If policymakers wish to reduce the amount of underage drinking, they should:
A. not share that statistic, and let teens think that it's a huge problem with all teens. B. Informing them will have no impact on their individual behavior. C. let teens know that the great majority of teens currently do not drink. D. The statistic is likely to influence their personal decision, but it is impossible to predict in what way without more information.
Which of the following is true?
a. The majority of millionaires received most of their wealth through an inheritance. b. The percentage of the population that are millionaires in inflation-adjusted dollars has been stable since the 1970s. c. About one-third of millionaires have college degrees. d. More than 75 percent of American millionaires have college degrees.