Graphically show how transfer payments affect labor supply and production possibilities.
What will be an ideal response?
See Figure 34.3 in your text. Transfer payments shift the labor supply curve leftward and the production possibilities curve toward the origin.
Economics
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The Medicaid program is financed by _____
a. excise taxes b. state governments c. the federal government d. state governments and the federal government
Economics
What is the relationship between household saving and taxes?
a. taxes = income - consumption - household saving b. household saving = income + taxes - consumption c. taxes = income + consumption + household saving d. household saving = consumption + income - taxes e. taxes = household saving - income + consumption
Economics