Which of the Following Statements Is Not Correct

question 120

Multiple Choice

Which of the following statements is not correct?

• A) An advantage of an in-kind transfer is that it prevents an alcoholic from spending a cash benefit on alcohol.
• B) An advantage of the Supplemental Security Income (SSI) program is that it benefits the sick and disabled.
• C) An advantage of a negative income tax program is that the poor must work in order to be eligible.
• D) Minimum wage laws result in higher unemployment among those groups of workers affected by the minimum wage.

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Definitions:

Average Variable Cost

The total variable cost divided by the number of units produced, representing the variable cost per unit of output.

Purely Competitive Market

A market structure characterized by a large number of sellers offering identical products, where no single seller can influence the market price.

Average Fixed Cost

The costs in production that remain constant regardless of output level, when divided by the produced output quantity.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing the excess over the firm's opportunity costs.