Which of the following is NOT an example of buyer interaction that may improve the effectiveness of monopsony power? A) Professional sports leagues that coordinate salary structures for players across the teams. B) A buying cooperative in which members pool their purchases into one large order. C) Labor unions that negotiate wage contracts for many […]
The poverty rate by family size levels off after 4 children. Indicate whether the statement is true or false ANSWER F
Of the in-kind programs, food stamps have the highest total annual cost. Indicate whether the statement is true or false ANSWER F
Nancy is considering forming a 5 year business partnership with Claudia. Nancy believes her portion of the partnership will generate the following profits: Year Profits Present Value 1 $2,000 2 $4,000 3 $12,000 4 $15,000 5 $18,000 Nancy’s appropriate discount rate is 6%. To join the partnership, Nancy needs to invest $30,000. Does the partnership […]
Unintended births do not seem to be greater at lower income levels. Indicate whether the statement is true or false ANSWER F
Under TANF, there is a lifetime eligibility cap of five years, with some loopholes. Indicate whether the statement is true or false ANSWER T
The percentage “markdown” due to monopsony power is equal to ________. A) (P – MC)/P B) 1/ED C) (MV – P)/P D) P[1 + (1/ED)] ANSWER C
Less than 200,000 poor families would no longer be counted as poor if each family had the same income and one person less. Indicate whether the statement is true or false ANSWER F
Ed’s Electronic Devices has an asset beta of 1.2. The market rate of return is 12% and the risk-free rate of return is 2%. Ed is considering updating his production technology. If he does so, he expects the cash streams indicated in the table below. Given this information, should Ed update his production technology? Year […]
Under TANF, by the year 2002, half of adult recipients were supposed to be in some form of work activity. Indicate whether the statement is true or false ANSWER T
