An economy has the income shares information in the table above. Which of the following is TRUE?
A) The information in the table represents the income distribution in the United States.
B) Income in the U.S. economy is more equally distributed than that represented in the table.
C) Income in the U.S. economy is less equally distributed than that represented in the table.
D) The information in the table represents the wealth distribution in the United States.
C
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Suppose the inverse demand curve for good A is given by the equation P A = 10 - Q A /10, and the supply curve is perfectly elastic (horizontal) at $1. Good A is presently taxed at $2 per unit. Good B (which is independent of good A) has an inverse demand curve, P B = 5 - Q B /20, and is also perfectly elastic at $1. Good B is untaxed.
(A) How much tax revenue is collected and what is the excess burden of the $2 tax on A? (B) How much revenue is collected if the tax on good A is reduced to $1 per unit and good B is taxed at $1 per unit? (C) What is the total excess burden of taxing both goods at $1 per unit? (D) Which tax system is preferable from the point of view of economic efficiency?
An individual's supply curve is backward bending
a. True b. False Indicate whether the statement is true or false
The marginal product of labor and the price of the output produced determine the:
A. worker mobility B. the demand for labor C. the price of labor D. the supply of labor
The Fed:
A. has little control over the money supply. B. serves as the central bank for the United States. C. often uses a mix of lower taxes in its fiscal policy. D. ensures commercial bank profitability.