Why does redistribution, so that the distribution of income is equal, bring about less total output?
A) Incentives to work are reduced.
B) No one can determine marginal benefit or marginal cost as a result.
C) Those in political power will likely receive a larger income.
D) Because the marginal benefit and marginal cost of work have been equally increased.
E) The premise of the question is incorrect because an equal distribution of income would increase rather than decrease the total amount produced.
A
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Which of the following is an example of a normative statement?
a. The moon is made of green cheese. b. Women should earn the same income as men. c. When the price of a good rises, people will buy more of it. d. The more time you spend studying, the higher your economics test scores will be. e. The more time you spend studying for chemistry, the higher your economics test score will be.
In the foreign exchange market where French francs are traded for Japanese yen, a decrease in the interest rate in France is most likely to cause:
a. a decrease in the yen price of the French franc. b. an increase in the interest rate in Japan. c. an increase in the yen price of the French franc. d. an increase in the demand for French francs. e. an increase in the supply of yen.
A price index:
A. summarizes the changes in the cost of living for only rural consumers. B. measures how much the cost of a market basket has risen or fallen relative to the cost in a base time period. C. is generally only used with consumer goods and services D. allows us to see clearly the changes in the cost of a market basket daily.
The main advantage that metal coins had as money over pieces of un-minted metal was
What will be an ideal response?