The earned-income tax credit:
A. increases the personal income tax liability of low-income working families.
B. provides a cash payment to low-income working families if their tax credit exceeds their tax
liability.
C. is designed to make labor force employment less attractive.
D. was eliminated as part of welfare reform in 1996.
Answer: B
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In the long-run equilibrium for a perfectly competitive firm, price equals which of the following?
a. price. b. minimum short-run average total cost. c. short-run marginal cost. d. All of these.
If the U.S. dollar depreciates, it means that
a. the value of the U.S. dollar has increased. b. the value of foreign exchange has decreased. c. fewer U.S. dollars are required to purchase foreign exchange. d. more U.S. dollars are required to purchase foreign exchange. e. exports will immediately fall.