Author Question: Increases in the minimum wage are intended to raise the incomes of low-income workers. Many ... (Read 83 times)

appyboo · **on:** Jun 29, 2018

Increases in the minimum wage are intended to raise the incomes of low-income workers. Many economists favor a different policy to achieve this goal, a policy that avoids the deadweight losses that result from the minimum wage. What is this policy?

A) the Alternative Minimum Tax
B) the earned income tax credit
C) distribution of food stamps to low-income consumers
D) distribution of vouchers that can be used for rent or mortgage payments

Question 2

Refer to Table 2-20. What is Japan's opportunity cost of producing one wristwatch?

A) 0.04 pounds of rice B) 4 pounds of rice C) 25 pounds of rice D) 40 pounds of rice