(I) Positive economics cannot determine how much income inequality should be present in a country. (II) Critics of government action to reduce income inequality argue that modifying the market process of income determination may create perverse incentives and hurt wealth creation
a. Both I and II are true.
b. Both I and II are false.
c. I is true; II is false.
d. I is false; II is true.
A
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Any action that gives rise to a demand for foreign currency is a
A) deficit item on the current, financial, or capital account. B) deficit item on the current account and a surplus item on the financial and capital accounts. C) surplus item on the current account and a deficit item on the capital and financial accounts. D) surplus item on the current, financial, or capital account.
What is the total cost, at the level of production where Pastry Paradise is indifferent between which technology is used?
a. $1750 b. $1000 c. $1500 d. $2000
According to the rational expectations school, a correctly anticipated expansionary monetary policy will:
a. increase prices and real output b. increase real output only in the short run. c. have no effect on prices or real output. d. decrease prices and real output. e. lead only to a higher price level.
All explanations for the upward slope of the short-run aggregate supply curve suppose that the quantity of output supplied increases when the actual price level exceeds the expected price level
a. True b. False Indicate whether the statement is true or false