Assume the Nozick rules are being followed in the economy so that the distribution of income is fair. What must be true for this to create an efficient allocation of resources?
A) All people are earning equal incomes.
B) There are no public goods, monopolies, high transactions costs, or external costs and benefits.
C) The costs of administering redistribution equals the benefits the poor receive.
D) The government must redistribute income in a fashion that minimizes the "big tradeoff."
E) The government must allocate resources using a command mechanism.
B
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The Social Security tax is an example of an automatic stabilizer
Indicate whether the statement is true or false
Since its inception in January 1999 until 2011, the dollar has consistently appreciated against the euro
a. True b. False Indicate whether the statement is true or false
The new classical economists are the __________________.
Fill in the blank(s) with the appropriate word(s).
Suppose the firm or firms in the market for Good A face a downward-sloping demand curve, maximize profit by producing the quantity at which marginal revenue equals marginal cost, set the price higher than the marginal cost, and break even in long run equilibrium. Which one of the following market structures most likely exists for Good A?
A. Perfectly competition. B. Monopoly. C. Monopolistic competition. D. Oligopoly.