Senator Brown wants to increase taxes on people with high incomes and use the money to help the poor. Senator Johnson argues that such a tax will discourage successful people from working and will therefore make society worse off. An economist would say that
a. we should agree with Senator Brown.
b. we should agree with Senator Johnson.
c. a good decision requires that we recognize both viewpoints.
d. there are no tradeoffs between equity and efficiency.
c
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Table 7-4 ? 6 346 490 600 692 775 846 ? 5 316 448 548 632 705 775 ? 4 282 400 490 564 632 692 CAPITAL 3 245 346 423 490 548 600 ? 2 200 282 346 400 448 490 ? 1 141 200 245 282 316 346 ? 0 1 2 3 4 5 6 ? LABOR ? ? ? ? ? Table 7-4 shows a production relationship. Assuming the labor input is fixed at 4, what will be the optimum capital input assuming an output price of $1 and a $90-per-day cost for one unit of capital?
A. 1 B. 2 C. 3 D. 4
In comparison to the situation in the late 1970s, the United States experienced lower nominal interest rates and higher real interest rates in the late 1990s
a. True b. False Indicate whether the statement is true or false
The inflation rate is the annual percentage change in the average price level.
Answer the following statement true (T) or false (F)
The marginal rate of substitution is the
A. change in the quantity of one good that changes the utility received by one unit. B. rate at which the consumer can trade one good for the other in the marketplace. C. rate at which the consumer will give up one good for an additional unit of the other good, such that total satisfaction is constant. D. same thing as the marginal utility of a good.