The EITC creates an incentive to understate income for workers whose earnings are less than the wage ceiling for maximum credit

If the tariff on computers is not changed, but domestic computer producers shift from domestically produced semiconductors to imported components, then the effective rate of protection in the computer industry will

A) increase. B) decrease C) remain the same. D) depend on whether computers are PCs or "Supercomputers." E) no longer apply.

Which of the following is NOT an example of an externality?

A. The development of a vaccine for preventing flu. B. Acid rain that destroys forest land throughout the Midwest. C. Gas prices that doubled between 1998 and 1999. D. A factory that dumps dangerous chemicals into the Hudson River.