According to economists who emphasize the connection between productive contribution and economic reward, a more equal income distribution
a. is instrumental to economic growth
b. always helps the poor in the long run
c. is at the heart of the ethics underlying competitive markets
d. creates inefficiency
e. may create a bigger GDP, but the individual shares of the GDP are smaller
D
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What is a problem with barter that makes it so difficult to use?
A) Individuals have to produce something to trade with. B) Barter omits the store of value role for money. C) Barter requires use of only fiat money. D) Barter requires a double coincidence of wants. E) Barter is very efficient but illegal because it avoids taxation.
In the long run, the real interest rate is 3 percent, real GDP grows at 4 percent, velocity is constant, and the quantity of money grows at 6 percent. The nominal interest rate is
A) 3 percent. B) 10 percent. C) 5 percent. D) 6 percent. E) 4 percent.
Demand for a good will tend to be more price elastic if it exhibits which of the following characteristics?
A) It accounts for a small part of the consumer's total income. B) The good has many available substitutes. C) It is a non-durable (as opposed to a durable good). D) There is little time for the consumer to adjust to the price change.
When the quantity of a good bought and sold is below the market equilibrium quantity, the loss of total surplus that results is called:
A. producer surplus. B. deadweight loss. C. total surplus. D. consumer surplus.