Which of the following is true?
a. The close link between personal income and provision of productive resources to others provides individuals with a strong incentive to develop skills.
b. Income can be taxed away from some and transferred to others without altering the incentive to engage in productive activities.
c. Holding technology constant, the size of the economic pie available for distribution among economic participants is fixed.
d. In a democratic setting, the government's tax and spending policies can redistribute income without influencing the size of the economic pie.
e. Both b and d are correct.
A
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Trends in economic growth of South Korea have been significantly different from the trends in economic growth of North Korea. This is primarily because
A) North Korea has inclusive institutions while South Korea has extractive institutions. B) quality of agricultural land is better in North Korea than in South Korea. C) quality of agricultural land is better in South Korea than in North Korea. D) South Korea has inclusive institutions while North Korea has extractive institutions.
A change in output by one firm in an industry affects the sales of its competitors. This exemplifies ______.
a. tie-in sales b. social welfare c. perfect competition d. mutual interdependence
Using the above table, the market clearing price is ________ and equilibrium quantity is ________.
A. $150; 150 B. $70; 150 C. $55; 80 D. $60; 150
In 2006 and 2007, for the first time in decades, in many major urban areas across the U.S.,
A. Springfield, Ohio became the nation's Least Affordable Place to Live according to NAHB. B. the NASDAQ stock market lost approximately 70% of its value. C. housing prices began to fall. D. property tax rates decreased.