Welfare data show that in the United States
a. most welfare recipients receive benefits only for a short time.
b. welfare encourages young women to have children.
c. children brought up on welfare tend to remain on welfare as adults.
d. having poor parents does not increase the chances of a child's being on welfare as an adult.
e. children of poor parents have a 50 percent chance of being middle-income adults.
A
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According to the Coase Theorem, individuals can always work out a mutually beneficial agreement to solve the problems of externalities even when high transaction costs are involved
a. True b. False Indicate whether the statement is true or false
Suppose society consists of three individuals: Phil, Jay, and Mitchell. Phil has $60,000 of income, Jay has $200,000 of income, and Mitchell has $100,000 of income. A utilitarian would argue that
a. taking $1 from Mitchell and giving it to Phil would increase society's total utility. b. taking $1 from Mitchell and giving it to Jay would increase society's total utility. c. taking $1 from Phil and giving it to Jay would increase society's total utility. d. None of the above are correct because all three individuals have sufficient income.