A. the price of the product

C. total labour cost

D. the wage rate

A. a benefit in kind

C. none of the above

D. a universal (social insurance based) benefit

A. average tax rate

B. proportional tax rate

D. marginal tax rate

A. Rs difference between the weekly salary he finally accepts and the Rs500 weekly salary that he has forgone

C. the Rs500 weekly salary that he has forgone to search for another job

D. Rs0, since he is currently unemployed

A. total variable cost curve

C. total product of labour curve

D. marginal cost curve

B. inheritance tax

C. income tax

D. a tax on profits.

A. anti-poverty programs attract naturally lazy people to begin with.

C. they make recipients more comfortable than most middle-class citizens.

D. in order to be eligible for benefits a recipient cannot have a job

A. reduce the supply of labour.

B. increase the demand for labour

D. have no effect on the supply of labour

A. equal to the minimum wage

B. none of these answers

C. Social Security income of the elderly and disabled

D. wages fixed by a union or other labour contract

B. will be perfectly inelastic in the long run. but upward sloping in the short run

C. is perfectly elastic since there is fixed amount of land

D. is perfectly inelastic since there is a fixed amount of land

A. an equal tax

B. a regressive tax

D. a progressive tax

A. firms to move up their demand curves for accountants

B. firms to move down their demand curves for accountants

C. the demand curve for accountants to shift to the left, since it requires fewer accountants than it did before to do the same amount of work.

A. understate the inequality of living standards

C. could exaggerate or understate the inequality of living standards depending on whether the transitory shocks are positive or negative

D. accurately represent the true inequality of living standards

A. structure of the tax.

C. behaviour of shifting the tax to another party

D. measure of the impact the tax has on employment and output

A. benefits received tax

B. progressive tax

D. proportional tax

B. specific

C. Excise duty

D. Direct

B. occupational differentials

C. job differentials.

D. search differentials

A. redistributing income from rich to poor because this is what the members of society would choose to do if they were behind a veil of ignorance

C. allowing each individual to maximize their own utility without interference from the government

D. istributing income from rich to poor because this would maximize the well-being of the worst-off person in society

A. encourage people to quit their jobs

C. reduce the benefits of additional job searching

D. enable people to quit searching for work

A. leisure becomes less expensive and households buy less of it.

B. leisure becomes more expensive and households buy more of it

D. leisure becomes less expensive and households buy more of it

A. wages of men will be higher but the marginal productivity of men will be lower than it otherwise would be

B. the wages of men will be lower but the marginal productivity of men will be higher than it otherwise would be

C. both the wages and the marginal productivity of men will be lower than they otherwise would be

B. income is distributed equally

C. all the income is received by the top 20% of the income distribution

D. the income is split equally between the top 20% and the rest of the distribution.

A. how many producers there are:

B. whether there is perfect or imperfect information

C. who is legally obliged to pay the tax

A. indirect demand

B. the value of the marginal product of auto workers.

D. output demand

A. the amount paid each year by a tenant for an apartment

C. any profit earned by stockholders when they sell their stock

D. the profit earned by the owner of any housing unit.

A. the idea that people should consider policy as if behind a veil of ignorance as to what their circumstances might be in society, and the idea that as long as there is no theft then there is no need for governments to intervene and redistribute income.

C. the idea that everyone in society should have an equal income

D. the idea that people a veil of ignorance as policy as if behind a veil of ignorance as to what their circumstances might be in society, and the ignorant people should be looked after

A. Maximize the total utility of society

B. maximize the economic freedom of individuals by minimizing government interference in private decision making

C. minimize the difference between the rich and poor

D. minimize the well-being of the best-off person in society

A. will have no effect on labour supply

B. will increase labour supply.

D. could cause either an increases or a decrease in labour supply

B. affect neither the current nor the permanent income of a worker

C. reduce a workers permanent income but not their current income

D. increase a workers current income and permanent income

B. the most common way of representing the income distribution graphically

C. a commonly used measure of the degree of inequity in an income distribution

D. a commonly used measure of the degree of inequality in an income distribution

A. income effect and the substitution effects are equal

B. income effect is zero

D. substitution effect outweighs the income effect

A. decreases since the customer now has more income to spend

B. may increase of decrease depending on the individuals preferences.

C. remains constant

A. unskilled workers if the demand for labour is relatively inelastic

C. skilled workers if the demand for labour is relatively inelastic

D. skilled workers if the demand for labour is relatively elastic

B. those who benefit the most from government services should have the greatest voice in determining what gets produced

C. those with equal ability to pay should bear unequal tax burdends.

D. those who benefits the most from government services should bear the higher tax burden.

A. those with equal ability to pay should bear unequal burdens

C. those will equal ability to pay should bear equal tax burdens.

D. those who benefit the most from government service should bear the higher tax burden

A. understate the inequality of living standards

B. accurately represent the true inequality of living standards

C. could exaggerate of understate the inequality of living standards depending on whether the transfers are goods or services.

A. Such redistribution would mean that those who worked hard were no better off than those who were lazy and this would be unfair.

B. such redistribution would not maximize the total income of all members of society

C. such redistribution would amount to confiscation of honestly earned income from higher earners and so would be unjust.

A. MPL/PX

B. (MPL) (PX)

D. MPL + PX

A. current annual income is a good measure of the distribution of living standards.

B. none of these answers

C. life-cycle income is a good measure of the distribution of living standards.

D. transitory income is a good measure of the distribution of living standards

B. a situation in which those receiving state benefits may be almost no better off if they choose to work more to earn more income for themselves and their families because doing so will mean they have to pay back the benefits they have previously received

C. a situation in which those receiving state benefits are discriminated against by employers and so find it more difficult to find jobs.

D. a situation in which workers are unable to find jobs.

A. the Pakistan benefit system makes being poor vary degrading

C. poor people are excluded from most leisure and social activities

D. in the Pakistan poor people are heavily taxed

A. occurs when taxes cause prices to increase but wages to fall.

C. is the way in which a tax is structured

D. is the ultimate distribution of a taxs burden

A. none of these answers

B. all of these answers

D. utilitarianism

A. a universal (social insurance based) benefit

C. none of the above

D. a means tested cash benefit

A. your total income divided by the total amount of tax you pay.

B. the additional tax you pay divided by your total income

D. the total amount of tax you pay divided by your total income

A. the same percentage of their income in taxes as low income people all the taxes in the economy.

B. all the taxes in the economy

C. a lower percentage of their income in taxes than low income people

A. reduces the cost to the government of fighting poverty

B. would not provide benefits to lazy people

D. ensures that the poor actually receive what the government thinks they need does all these answers.

A. making spending decision but not labour-supply decision.

C. considered to be poor but not for those who are considered to be rich

D. making labour-supply decisions but not spending decisions.

A. training investment

C. skill capital

D. skill-building investment

A. the additional revenue a firm earns by employing on additional unit of labour

C. the additional profit a firms earns by employing one additional unit of labour

D. the marginal product of capital times the price of labour.