Author Question: Which of the following is not advantage of a negative income tax? a. A negative income tax is ... (Read 60 times)

mikaylakyoung

  • Hero Member
  • *****
  • Posts: 531
Which of the following is not advantage of a negative income tax?
 
  a. A negative income tax is simple to administer.
  b. A negative income tax is equivalent to a cash transfer.
  c. A negative income tax retains the paternalistic nature of in-kind transfers.
   d. A negative income tax could replace many transfer programs.

Question 2

If the income elasticity of potatoes is -0.7, then the income effect caused by a price decrease of potatoes
 
  A) tends to increase the consumption of potatoes.
  B) tends to decrease the consumption of potatoes.
  C) is less than the substitution effect.
  D) None of the above.



Meganchabluk

  • Sr. Member
  • ****
  • Posts: 301
Answer to Question 1

c

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

For a complete list of videos, visit our video library