Suppose a Russian economist told you that since the fall of communism, the Russian income distribution has shifted to perfect inequality, you would know then (no need to calculate), that the Russian Gini coefficient is
a. 1
b. 0
c. 10
d. -1
e. infinite
A
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Which of the following is a clear difference between the market system and government?
A) Collective welfare controls government policy; the market system serves the welfare of individuals. B) Competition regulates the market system, but competition does not constrain the actions of government officials. C) The market system serves the interests of some; government serves the interests of all. D) Each of the above statements expresses the difference between the two. E) None of the above expresses the difference between the two.
All of the following were important structural changes in American capitalism during the period 1960–95 except
(a) New technology in the form of automated (machine-guided) production processes (b) A capital-labor accord which allowed workers to share in productivity gains through wage increases, particularly during the 1950s and 1960s (c) An increase in self-sufficiency as the nation reduced its economic interdependence with other nations (d) A large and central role for government in directing the post-war economy
Which of the following is not a common response to the moral hazard problem that employers face?
a. offering all employees some funding for additional education b. paying efficiency wages c. requiring employees to provide itemized receipts for reimbursable expenses d. paying year-end bonuses rather than higher monthly earnings
Based on the graph showing rational expectations and the AD/AS model, the change caused by expansionary policies is ______.
a. higher price levels
b. lower unemployment
c. higher RGDP
d. lower price levels