Which of the following is not correct?
a. Market power can cause markets to be inefficient.
b. When the decisions of buyers and sellers affect nonparticipants, markets may be inefficient.
c. The tools of welfare economics cannot help economists when markets are inefficient.
d. Externalities can cause markets to be inefficient.
c
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Which of the following jobs is most likely to have a positive compensating wage differential?
a. economist b. baker c. accountant d. stunt person e. computer programmer
Jason is a single father with two children who is eligible for welfare. He can work as a cashier at a grocery store for $6 per hour up to 1,200 hours per year. If Jason does not earn any income, he will receive $15,000 a year in welfare. If Jason works, the government will deduct 60 cents from his welfare stipend for every $1 that he earns in income. Given this policy, what will be Jason’s income is he works 600 hours during the year?
a. $3,600 b. $16,440 c. $15,000 d. $12,840