Government programs that take money from high-income people and give it to low-income people typically
a. improve economic efficiency by reducing poverty.
b. reduce economic efficiency because they distort incentives.
c. have no effect on economic efficiency because they both reduce poverty and distort incentives.
d. sometimes improve, sometimes reduce, and sometimes have no effect on economic efficiency.
b
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The international agreement signed in 1947 to promote world trade by reducing tariffs and other barriers to international trade was called
A) GATT. B) NAFTA. C) WTO. D) Bretton-Woods agreement.
If the federal government were to run a budget surplus, this would
a. increase the size of the national debt. b. reduce the size of the national debt. c. leave the size of the national debt unchanged. d. decrease the national debt only if the government also reduces the supply of money.
Historically, the key role in assisting countries that ran into financial difficulties was played by
A) Europe. B) Japan. C) the IMF. D) the United Nations.
The above figure shows the demand and supply curves in the market for milk. Currently, the market is in equilibrium
If the government imposes a $2 per gallon tax to be collected from sellers, calculate the dead weight loss associated with the tax, and explain why the dead weight loss occurs.