Most studies indicate that the degree of income inequality in the United States has
a. been increasing in recent decades.
b. been declining in recent decades.
c. been constant since 1970.
d. fluctuated widely from year to year.
A
You might also like to view...
When long-run average costs increase as output increases, there are
A) economies of scale. B) diseconomies of scale. C) constant returns to scale. D) constant marginal costs.
What is the optimal level of provision of a public good?
What will be an ideal response?
During the 1900-1950 period,
a. the growth of real GDP was more stable than has been the case since 1950. b. unemployment seldom exceeded 4 percent of the labor force. c. double-digit swings in real GDP during a single year were not uncommon. d. the money supply was increased at a constant annual rate of between 4 percent and 6 percent throughout the period.
Suppose that a government agency is trying to decide between two pollution reduction policy options. Under the permit option, 100 pollution permits would be sold, each allowing emission of one unit of pollution. Firms would be forced to shut down if they produced any units of pollution for which they did not hold a permit. Under the pollution tax option, firms would be taxed $250 for each unit of pollution emitted. The regulated firms all currently pollute and face varying costs of pollution reduction, though all face increasing marginal costs of pollution reduction. Suppose the regulators chose the permit policy instead of the tax policy. What might explain that decision?
A. Permit auctions raise more revenue than do taxes. B. The permit policy will reduce pollution by more than would the tax policy. C. The permit policy allows regulators to achieve reduction goals without having detailed knowledge about firms' abatement costs. D. Firms prefer the permit policy because it allows them to choose the least-costly reduction technology.