As long as production is such that marginal social benefit is greater than marginal social cost, an efficient outcome occurs
Indicate whether the statement is true or false
FALSE
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Income inequality in the United States has increased in part due to globalization. How does globalization contribute to income inequality?
A) It reduces the cost of producing goods and therefore lowers the value of labor services. B) It allows domestic firms to hire low-skilled workers anywhere in the world, putting U.S. workers in competition with foreign workers. This has caused the wages of low-skilled workers to fall relative to the wages of other workers. C) It increases the demand for a wide variety of products which in turn increases prices beyond the reach of average-income households. D) It allows producers to exploit workers and reduce the wages they are willing to pay those workers.
The slope of a horizontal line is
a. infinitely large b. zero c. positive d. negative e. infinitely small
The Social Security payroll tax tends to be regressive
a. True b. False Indicate whether the statement is true or false
Which of the following is a tool of the Federal Reserve System?
A. Encouraging employment by lending money at a discounted rate to firms that are in danger of having to make layoffs. B. Reducing the burden of household debt by capping credit card and other loan interest rates at reasonable levels C. Buying or selling stocks of publicly traded corporations in order to stabilize the stock market D. Buying or selling bonds in the open market in order to stimulate the economy during recessions and prevent inflation