Negative income tax plans have the disadvantage of decreasing work incentives in comparison to existing welfare programs without work incentives

A reduction in the price charged for luncheon specials by a downtown cafeteria will

A) affect the demand (curve) for that cafeteria's luncheons if its competitors react. B) have no effect on the demand for lunch at other downtown restaurants. C) increase the cafeteria's gross revenue from lunch business. D) increase the cafeteria's net revenue from lunch business if the demand is elastic. E) increase the cafeteria's net revenue from lunch business if the demand is inelastic.

A production possibilities frontier that is a downward-sloping straight line implies

A) economies of scale. B) diseconomies of scale. C) economies of scope. D) no economies of scope.