Your upstairs neighbor has the right to practice his clog dancing at night. But you find the best time to study is at night, and the noise from the clog dancing makes it hard for you to concentrate. You tell your neighbor that you will wash his car every week if he does not practice his clog dancing at night and he agrees to this. This is an example of the
A. fallacy of composition.
B. Coase theorem.
C. free-rider problem.
D. drop-in-the-bucket problem.
Answer: B
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With a negative income tax featuring an $8,000 minimum level of income and a 20% tax rate, a household earning zero dollars would receive a subsidy of:
a. zero b. $1,600 c. $6,400 d. $8,000
As economies develop, more jobs will require more education and training. What effect will this have on the labor market of 18 to 24 year olds?
a. The demand for workers ages 18 to 24 years old will decrease as more young people go to school. b. The supply of workers ages 18 to 24 years old will decrease as more young people go to school. c. The demand for workers ages 18 to 24 years old will increase as more young people go to school. d. The supply of workers ages 18 to 24 years old will increase as more young people go to school.