If the benefits from an antipoverty program are phased out as an individual's income increases, the program will
a. cost the government more than a program that benefits everyone.
b. increase the effective marginal tax rate that the poor face.
c. encourage greater work effort from the poor.
d. lead to an excess supply of labor among unskilled workers.
Ans: b. increase the effective marginal tax rate that the poor face
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The slope of a curve measures
A) only the change in the horizontal variable. B) the length of the curve. C) only the change in the vertical variable. D) the change in one variable in response to the change in the other variable.
Lisa decided to give up being on the soccer team for piano lessons. Her opportunity cost of pursuing piano lessons is
A) zero, as long as someone other than Lisa pays for the lessons. B) zero, as long as someone other than Lisa paid for her soccer fees and equipment. C) the satisfaction Lisa had enjoyed by being on the soccer team. D) the satisfaction Lisa enjoys by studying the piano. E) both A and B above.