Which of the following is an economic argument that supports income inequality?
a. If given extra money, the poor would spend it on frivolous items.
b. The poor have the same chance of being rich as anybody else.
c. If people have the same incomes, this will lead to social stability.
d. It is only fair that people's incomes reflect their contribution to society.
e. If there are poor people, the rich will have some place to bestow their largess.
D
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Refer to Figure 24-2. Ceteris paribus, an increase in the expected future price level would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
In the United States and other high-income countries, capital's share and labor's share of total income have been about ________, respectively
A) 1/2 and 1/2 B) 4/5 and 1/5 C) 1/3 and 2/3 D) 3/4 and 1/4
The use of real options in capital budgeting
A) may raise the NPV of a capital project. B) makes the analysis of the project considerably easier. C) allows management to make decisions more quickly. D) eliminates the need for calculating the project's risk adjusted discount rate.
Suppose that at the current level of output, price = $12, MC = $4, AVC = $7, and ATC = $11. Which of the following is TRUE?
A) The firm should decrease output. B) The firm should shut down. C) The firm should increase output. D) The firm should maintain the current level of output.