According to the maximin criterion, income should be transferred from the rich to the poor as long as it
a. raises the well-being of the least fortunate.
b. does not alter incentives to work and save.
c. promotes an equal distribution of income.
d. does not lower the welfare of the elderly.
a
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Which balance of payments account records payments for imports and exports?
A) reserves account B) capital and financial account C) current account D) official settlements account E) trade account
If you put $100 into a bank account that earns five percent interest per year, what is the formula you should use to determine the account's future value in one year?
A) Future value = [Present value × (1 + i)] B) Future value = (Present value × i) C) Future value = (Present value / i) D) All of these yield the same answer.
If a firm has significant market power, say, over 40 percent, the probability is high that
a. in the long run profits will be zero b. the industry is oligopolistic c. the market is highly competitive d. sales are quite high e. the industry wherein the firm operates has a low four-firm concentration ratio
Because Picasso's painting Guernica is one-of-a-kind, its price is
A. inelastic. B. independently determined. C. supply determined. D. demand determined.