The primary assumption made in Rawlsian justice is that
A. each individual tries to maximize his or her own well-being at the expense of everyone else.
B. people are risk averse.
C. the marginal utility of income is decreasing.
D. each person will produce according to his or her ability regardless of the reward.
Answer: B
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Suppose MRS does not equal MRT for all consumers. In this case, the economic outcome is not fully efficient because:
A) exchange is inefficient. B) the use of inputs in production is inefficient. C) the mix of outputs in inefficient. D) none of the above
Business structure has remained relatively stable over the history of American business
Indicate whether the statement is true or false
If we want to gauge how much the income tax system distorts incentives, we should use the
a. average tax rate. b. ability-to-pay principle. c. total tax revenue collected. d. marginal tax rate.
A physician whose job is to determine if a patient needs to be referred to a specialist is called
A. an HMO doctor. B. a primatologist. C. a primary care physician. D. an intern.