Maryanne expects to work for another 30 years and expects to live another 10 years after she retires. If Maryanne completely smooths consumption over her lifetime, her marginal propensity to consume out of wealth is

A tax on a market with elastic demand and elastic supply will shrink the market more than a tax on a market with inelastic demand and inelastic supply will shrink the market

a. True b. False Indicate whether the statement is true or false

The welfare program economists believe to be most compatible with economic efficiency is

A. a regressive tax system. B. AFDC. C. a negative income tax. D. Medicare/Medicaid.