Question

QUESTION 5 Which of the following might be an indirect, unintended effect of providing income support to those without jobs? a. Those without jobs are made better off. b. People without jobs no longer search for and acquire jobs. c. People without jobs now search for and acquire jobs. Od. Those without jobs are made worse off. QUESTION 6 Suppose that because the government increases the minimum wage, employers choose to hire fewer workers. This is an example of ar a. indirect effect. b. desired outcome. c. intended effect. d. direct effect. QUESTION 7 Which type of government intervention can be used to lower the price for private sales or purchases of underproduced goods? a. subsidies b. taxes C. restrictions or mandates of private sale or purchase d. public financing of private provision QUESTION 8 Suppose the government taxes the rich to distribute money to the poor. Which of the following is an example of an efficiency loss? a. Rich people don't work as hard because of the tax. b. Rich people take home less of the money from their jobs because of the tax. c. Poor people work just as hard because they still need to make ends meet. d. Poor people are better off because of the redistribution.

Answer 1

5), unintended effect are those results that occurs due to certain policy but it was not in government planned outcomes.

The only unintended result that happen due to income support to jobless people is that they stop searching for jobs.

Option b is right

6) the only intention of government is to increase income of labours by Increasing minimum wage.so option b and c are wrong.

Because wage is directly effect labour hired by firms, so it is a direct unintended effect,so option D is correct

7) when government provide subsidy to producers ,their production cost decreases.so they are willing to produce more at same price,so supply Increases and supply curve shifts right ,so demand remain unchanged ,it results in decrease in equilibrium price.

So option A is correct

8)when government charge rich people taxes ,so that to redistribute money to poor. It discourage people to work hard as before,which results in productivity loss and productive decrease.

So option A is correct