Which of the Following Statements Is Correct

question 38

Multiple Choice

Which of the following statements is correct?

• A)A minimum wage law will result in less additional unemployment if labor demand is elastic rather than inelastic.
• B)An in-kind transfer allows a person to use the benefit to purchase whatever they think they need most.
• C)If a tax policy states that taxes owed equal 1/3 of income less $15,000, a person earning $25,000 per year would owe $6,666.67 in taxes.
• D)Welfare reform enacted in 1996 limited the amount of time recipients could stay on welfare.

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Definitions:

Price Elasticity

A measure reflecting the impact of price variations on the demand for a particular product.

Telephone Wire

The physical medium through which electrical signals for voice communication are transmitted over distances, traditionally made of copper.

Price Elasticity

Price elasticity measures how the quantity demanded or supplied of a good changes in response to a change in its price, crucial for understanding market dynamics.

Aggregate Demand

Aggregate demand is the total demand for all goods and services in an economy at a given overall price level and in a given time period.