Under a negative income tax program, if a minimum income is set at $16,000 for a family of four and the tax rate is 25%, a family earning $8,000 would have an after tax income of

The demand for salt is probably more inelastic at generally prevailing prices than the demand for potatoes because

A) potatoes require salt but salt does not require potatoes. B) salt has long been a favorite target for taxation. C) salt is cheap relative to most users' incomes and has few good substitutes. D) salt will keep longer than potatoes before spoiling. E) there is so much potential salt in the ocean.

The major determinant of an individual's income is

a. whether or not her family is wealthy. b. how well she gets along with her co-workers and boss. c. how productive she is combined with demand for what she produces. d. how much she enjoys the work.