If income were distributed according to the egalitarian principle of "to each exactly the same," then one problem would be that
A) there would be little or no incentive for individuals to take risky, hazardous, or unpleasant jobs.
B) individuals would have an excess desire to invest in their own human capital.
C) too many individuals would want to take risky jobs.
D) productivity levels would probably become too high.
A
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Use the following table of U.S. balance of payments accounts to answer the next question.Current AccountFinancial AccountCapital AccountCreditDebitCreditDebitCreditDebit$45 billion$60 billion$72 billion$52 billion$7 billion$12 billionSuppose the U.S. exports $10 billion of coal to France. Which of the following statements is true?
A. The increase in the financial account credit of $10 billion will reduce the capital account credit by $2 billion and the current account credit by $8 billion. B. The increase in the capital account debit of $10 billion will increase the financial account debit by $10 billion as well. C. The increase in the current account debit of $10 billion will be offset by an increase in the capital account of $10 billion. D. The increase in the current account credit causes an increase in the financial and capital account surpluses of $5 billion each.
The total amount of producer surplus in a market is equal to
A) the area between the demand curve and the supply curve below the market price. B) the difference between quantity supplied and quantity demanded. C) the area above the market supply curve. D) the area above the market supply curve and below the market price.
Assume prices for corn and soybeans have been in decline over the last few months. What are the market impacts of the decline in the price of corn and soybeans on the fed cattle market that uses products from those grains as feed?
A. Increase in the price and a decline in the quantity of fed cattle; B. Increase in the price and an increase in the quantity of fed cattle; C. Decline in the price and a decline in the quantity of fed cattle; D. Decline in the price and an increase in the quantity of fed cattle.
Suppose that 100 firms operate in a perfectly competitive industry and each firm has the same technology and cost structure. If each firm maximizes profits by selling 20 units of output at $5.00, then the quantity supplied in the market at $5.00 is:
A. 2,000. B. less than 2,000. C. greater than 2,000. D. zero.