When a nation's real per capita Gross Domestic Product (GDP) increases, which of the following is TRUE?
A) Every individual in that nation shares in the economic gain.
B) A nation must channel most of the economic gains to its poorest citizens.
C) Low income people are guaranteed to lose; they never share in their nation's economic gains.
D) We don't know who has most benefited from economic growth unless we look at the distribution of income.
D
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Which of the following is a feature of a good theory?
A) A good theory does not rely on data. B) A good theory cannot be tested with data. C) A good theory is free from approximations. D) A good theory closely predicts actual behavior.
The Social Security system is financed by
A) a tax on individual retirement accounts. B) a payroll tax paid only by employers. C) a payroll tax paid by both employers and employees. D) a tax on luxury goods.
The effect of an increase in aggregate supply is a(n):
a. increase in the general level of prices and a decrease in real output. b. increase in the general level of prices and an increase in real output. c. decrease in the general level of prices and a decrease in real output. d. decrease in the general level of prices and an increase in real output.
Buyers of a product will bear the larger part of the tax burden, and sellers will bear a smaller part of the tax burden, when the
a. tax is placed on the sellers of the product. b. tax is placed on the buyers of the product. c. supply of the product is more elastic than the demand for the product. d. demand for the product is more elastic than the supply of the product.