1.When a homeowner puts on a flame-retardant roof on their house it is less likely to catch fire and, thus, less likely to allow fires to spread around neighborhoods. It also costs an extra $5,000. Given this set of facts

Group of answer choices

the free market will result in the optimal amount of flame-retardant roofs

the free market would overproduce flame-retardant roofs

the marginal social benefit for each roof is less than the marginal social cost

there is a market failure

3.Which of the following hasnotbeen considered in this class as a possible factor in increasing income inequality in the United States since 1968?

Group of answer choices

globalization

a reduction in the number of people attending college

changes in tax policy

technological change

4.Society is concerned about the lack of income mobility. Suppose a 2010 cross-sectional study finds that the poorest 20% of households earned 5% of total income. Ten years later another cross-sectional study finds the poorest 20% of households earned 5% of total income. In terms of income mobility:

Group of answer choices

the poor have probably risen out of poverty

the poor households of 2010 have remained equally poor

the poor are worse off in terms of income

the people in each study are not the same, so we can make no conclusion about income mobility

Everyone is worse off in terms of absolute wealth

8.A person with no income gets $500 per month in benefits and there is a benefit-reduction rate of 40%. If that person earns $1000 per month in wages, how much is their total monthly income (including wage and benefits)?

Group of answer choices

$1400

$1100

$600

$1500

$1200

$1000