1. Economic theory predicts that the introduction of child support enforcement programs will:

A. reduce the cost of providing welfare benefits to the states that provide such programs..

B. increase the labor supply of some welfare recipients who were not working prior to the introduction of this program.

C. have no effect on the labor supply of some welfare recipients.

D. All of the above are correct.

2. In the hedonic pricing model of job risk, a flatter isoprofit curve indicates that:

A. the cost of reducing risk is relatively high.

B. the cost of reducing risk is relatively low.

C. most individuals are not risk averse.

D. None of the above is correct.