A major problem with using the egalitarian principle to distribute income is that
A) it would eliminate the incentives that rewards provide in an economic system.
B) it is difficult to know when an equal distribution of income has been achieved.
C) it would not be fair to the wealthy.
D) there exist no mechanisms to carry out such a scheme.
A
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Consumer surplus
A. is the difference between the maximum price consumers are willing to pay for a product and the lower equilibrium price. B. rises as equilibrium price rises. C. is the difference between the maximum price consumers are willing to pay for a product and the minimum price producers are willing to accept. D. is the difference between the minimum price producers are willing to accept for a product and the higher equilibrium price.
Modern U.S. commercial banks perform all of the following functions EXCEPT
A) accept checking deposits. B) issue paper currency. C) make loans to households and business firms. D) accept savings deposits.
Assume a firm is currently producing 800 units of output, P = $10, MC = $10, ATC = $8, and AVC = $6. In this case, the firm is maximizing its profit, which equals $1,600
Indicate whether the statement is true or false
An increase in the supply of money will:
a. reduce the rate of interest and, thereby, trigger an increase in current spending by households and businesses. b. reduce aggregate demand and real output. c. increase only the general level of prices. d. lead to a higher rate of unemployment.