According to the text, the most important income distribution decisions that the government makes involve:
A. redistributing income through transfer payments to the poor.
B. maintaining a progressive income tax structure.
C. encouraging innovation through direct subsidies.
D. establishing and protecting property rights.
Answer: D
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Which of the following can cause a leftward shift in the aggregate supply curve?
A. Lower marginal tax rates. B. A major natural disaster such as hurricane or earthquake. C. A bumper agricultural crop. D. Trade liberalization.
You observe that grocery shoppers choose the shortest line at the checkout. This is an example of _____
a. rational self-interest b. selfishness c. greed d. blind materialism e. altruism
On the Lorenz curve, a perfectly equal distribution of income would be represented by:
A. an upward-shaped curve. B. a vertical line. C. a line with a slope of 1. D. a horizontal line.
How would a decrease in the price of the feed grains used to feed cattle affect the market for beef?
A. The demand for beef would increase, increasing beef prices. B. The demand for beef would decrease, decreasing beef prices. C. The supply of beef would increase, decreasing beef prices. D. The supply of beef would decrease, increasing beef prices.