The degree of income inequality produced by competitive markets, in Professor Rawls' view, is:
A. greater than the amount people would prefer.
B. minor.
C. acceptable.
D. consistent with the ideal amount.
Answer: A
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The individual countries of the Eurozone are on which side of the "policy trilemma"?
A) free capital mobility and independent monetary policy B) free capital mobility and fixed exchange rate C) fixed exchange rate and independent monetary policy D) fixed exchange rate and capital controls
Economic growth is important because expansion in the output of goods and services
a. necessarily creates more jobs (more work for people). b. makes it possible for individuals to consume more and achieve higher living standards. c. leads to an increase in the general level of prices. d. generates additional tax revenues for the government.
Bob, the manager and owner of a small company, believes in the theory of efficiency wages. As such, Bob would be most likely to agree with which of the following quotes?
a. "The only place where success comes before work is in the dictionary.". b. "Work hard. Play harder.". c. "Pay a man for the job you want him to do.". d. "Imagination is more important than knowledge.".
Which of the following methods could be used to correct for external costs?
A) Impose a tax or an effluent fee on the offenders. B) Have the offender clean up the pollution it caused. C) Require firms in the industry to install pollution control devices. D) All of the above would be appropriate.