The main attractive feature(s) of a negative income tax program is (are):

a. c and d.
b. c, d, and e.
c. it is simple.
d. it avoids the stigma of hand-outs.
e. it only subsidizes the unemployed.

a

Economics

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Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. Which of the following best describes Max's preferences?

A) d > b > e B) d = b = e C) a = b > c D) a = b > e

Economics

All else equal, relative to a person who earns minimum wage, a person who earns $30 per hour has:

A. a lower opportunity cost of driving farther to work. B. a higher opportunity cost of taking the day off work. C. the same opportunity cost of spending time on leisure activities. D. a higher opportunity cost of working an additional hour.

Economics