In using taxes as a tool for the redistribution of income and wealth in the U.S. economy, the government
a. taxes households with higher incomes at higher rates.
b. uses tax revenues to provide services used to a greater extent by households with lower incomes.
c. uses tax revenues to make transfer payments to households with lower incomes.
d. Does all of these.
d. Does all of these.
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International trade may make some individuals in a nation better off, while other individuals are made worse off
a. True b. False Indicate whether the statement is true or false
One unintended consequence of the various attempts to restrict farm acreage was that
A) output generally decreased, price increased, and farmers earned higher incomes. B) individual farmers intensified their efforts to harvest crops from the land still under cultivation. C) farmers' incomes remained constant in real terms. D) the land that was set aside became less productive.
Altering the marginal cost of preventive screening by reducing the out-of-pocket cost to zero:
a. will result in everyone with this coverage taking advantage of the free care and receiving the screenings. b. has little effect on the consumption of medical services. c. is a wise use of resources and results in more efficient screening outcomes. d. results in over-investment on screening technology. Using the funds elsewhere could have improved overall welfare.
A competitive employer is using labor in such an amount that labor's MRP is $10 and its wage rate is $8. This firm
A. should hire more labor because this will increase profits. B. is currently hiring the profit-maximizing amount of labor. C. should hire more labor, although this may either increase or decrease profits. D. is selling its product in an imperfectly competitive market.