In a market economy:
a. collective decision-making is more important than individual decision-making.
b. goods and services are distributed as if by an "invisible hand" to those who can not afford them.
c. profit provides an incentive to be productive.
d. the distribution of wealth is equitably distributed.
c
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Increases in the minimum wage are intended to raise the incomes of low-income workers. Many economists favor a different policy to achieve this goal, a policy that avoids the deadweight losses that result from the minimum wage
What is this policy? A) distribution of vouchers that can be used for rent or mortgage payments B) the earned income tax credit C) the Alternative Minimum Tax D) distribution of food stamps to low-income consumers
Schooling and other types of training
a. are regarded as investment in human capital. b. are an important cause of income differentials. c. involve workers' sacrificing current income in order to enjoy higher future income. d. All of the above are correct.
An increase in labor supply increases the equilibrium wage rate and decreases the number of workers hired
a. True b. False Indicate whether the statement is true or false
During World War II, the U.S. government increased spending:
A. by less than it raised taxes. B. by more than it raised taxes. C. by the same amount as it raised taxes. D. but did not increase taxes.