What are the strengths and weaknesses of the negative income tax (NIT) as an alternative to traditional welfare programs?
The tax would increase the incentive to earn, since one's income would always rise if earnings increased. Traditional welfare programs effectively tax away very high percentages of additional earnings by reducing payments substantially. The down side of the NIT is that incomes considerably above the poverty level would still receive money, so that the overall program could be costly.
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Which of the following will not shift the demand curve for grapefruit?
a. an announcement that eating a grapefruit before every meal will induce weight loss b. a new technology that cuts the labor time needed to harvest grapefruit c. an announcement that eating grapefruit causes skin problems d. a fall in the price of oranges e. an announcement that the price of grapefruit will increase next week
Explain the distinction between technological knowledge and human capital