Advocates of income inequality argue that government policy designed to lower the Gini coefficient significantly would likely cause, in the long run,
a. productivity growth
b. the poor's share of national income to fall
c. the income of the poor to decline
d. equality of income
e. saving and investment to rise
C
You might also like to view...
A bowed out production possibility frontier shows that the
A) opportunity cost of a good is constant as more of the good is produced. B) opportunity cost of a good decreases as more of the good is produced. C) opportunity cost of a good increases as more of the good is produced. D) opportunity cost relationship is linear. E) opportunity cost of producing another good is negative.
A country that must decrease production of one good in order to increase the production of another
A) must be using resources inefficiently. B) must be producing on its production possibilities frontier. C) must be producing beyond its production possibilities frontier. D) must have private ownership of property.
Assume the price of product Y (the quantity of which is plotted on the vertical axis) is initially $15 and the price of X (the quantity of which is plotted on the horizontal axis) is initially $3. Assume money income is initially $60. If the prices of Y and X now increase to $30 and $6 respectively and money income increases to $120, then the budget line will:
A) shift rightward and become steeper. C) shift rightward, but its slope will not change. B) shift rightward and become flatter. D) be unchanged.
Which case below best represents a case of price discrimination?
A. A professional baseball team pays two players with identical batting averages different salaries. B. A utility company charges less for electricity used during "off-peak" hours, when it does not have to operate its less-efficient generating plants. C. A major airline sells tickets to senior citizens at lower prices than to other passengers. D. An insurance company offers discounts to safe drivers.