In a laissez-faire economy, what determines the distribution of output?
What will be an ideal response?
It is determined by income and wealth. These in part depend on the skills an individual can offer in the labor market.
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Saving equals:
A. assets minus liabilities. B. wealth minus assets. C. current income minus spending on current needs. D. current spending minus current income.
Developing countries should
What will be an ideal response?
The concept that a decline in tax rates and other incentives will induce individuals and firms to increase productivity is typically referred to as
A. supply-side economics. B. demand-side economics. C. Keynesian economics. D. Ricardian equivalence.
The price at which the amount consumers wish to purchase equals the amount firms wish to sell is called the
A. equilibrium price. B. optimal result. C. optimal quantity. D. equilibrium quantity.