Which of the following is true?
a. Efficiency refers to the size of the economic pie; equality refers to how the pie is divided.
b. Government policies usually improve upon both equality and efficiency.
c. As long as the economic pie continually gets larger, no one will have to go hungry.
d. Efficiency and equality can both be achieved if the economic pie is cut into equal pieces.
a
You might also like to view...
Price discrimination is:
A. the practice of charging customers different prices for the same good. B. the practice of charging customers the same price for a variety of similar goods. C. choosing which prices to charge for certain items. D. the process of customers choosing items based on price.
The force that leads to zero economic profits for monopolistically competitive firms in the long run is: a. excess capacity
b. price wars among firms. c. new entry. d. excessive advertising.
Procyclical fiscal policies:
A. reduce cyclical fluctuations in the economy, but not as effectively as countercyclical fiscal policies. B. increase cyclical fluctuations in the economy. C. reduce cyclical fluctuations in the economy more effectively than countercyclical fiscal policies. D. reduce cyclical fluctuations in the economy about as effectively as countercyclical fiscal policies.
Refer to the information provided in Figure 3.3 below to answer the question(s) that follow.
Figure 3.3Refer to Figure 3.3. As your income increased, the demand for X shifted from D1 to D2. Good X is
A. an income-neutral good. B. an inferior good. C. a normal good. D. a luxury good.