If a tax was instituted such that every dollar collected in taxes from high income households resulted in a distribution of $.80 to low income households
A) efficiency and equality of incomes would both decrease.
B) equality of incomes would increase but efficiency would decrease.
C) efficiency would increase but equality of incomes would decrease.
D) efficiency and equality of incomes would both increase.
B
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When average total cost is decreasing as output expands: a. average fixed cost must be increasing
b. average variable cost must be falling. c. marginal cost must be greater than average total cost. d. marginal cost must be less than average total cost.
The Federal Reserve (Fed) was criticized for playing a role in causing the Great Recession. Which of the following criticisms most accurately captures this criticism?
a. The Fed kept monetary policy loose for too long, thereby fueling speculation in the housing market. b. The Fed kept monetary policy too tight immediately after the 2001 recession and then loosened it just prior to the recession, thereby precipitating the crisis. c.The Fed relaxed banking regulations after the 2001 recession, causing banks and other financial institutions to engage in speculative activities for which they were unprepared. d. The Fed encouraged home ownership by putting pressure on Fannie Mae and Freddie Mac.
The factor of production called "labor" can be defined as the:
A. time spent by employees in the production of goods, but not services. B. number of worker-hours a business uses at a given time. C. fraction of total costs spent on people. D. number of people a business has access to at any given time.
Countries gain from specializing in producing goods in which they have ________ and trading for goods in which other countries have ________
A) a comparative advantage; an absolute advantage B) an absolute advantage; an absolute advantage C) a comparative advantage; a comparative advantage D) an absolute advantage; a comparative advantage