The growth produced by markets:
A. affects the wealthy more than it affects the poor.
B. makes everyone better off and improves the distribution of income as well.
C. affects the level of income but not its distribution.
D. makes the average person better off but may worsen the distribution of income.
Answer: D
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Refer to the table above. Which of the following statements is true of the monopolist's total revenue?
A) As the monopolist reduces the price of its product from $9 to $3, its total revenue decreases. B) As the monopolist reduces the price of its product from $9 to $3, its total revenue increases. C) As the monopolist reduces the price of its product from $9 to $3, its total revenue increases then decreases. D) As the monopolist reduces the price of its product from $9 to $3, its total revenue decreases then increases.
Which of the following is not correct?
a. Poverty is long-term problem for relatively few families. b. Measurements of income inequality usually do not include in-kind transfers. c. Measurements of income inequality use lifetime incomes rather than annual incomes. d. Measurements of income inequality would be more meaningful if they reflected permanent rather than current income.
Indifference curves that cross would suggest that
a. the consumer does not prefer more to less. b. the consumer is likely to prefer a redistribution of income from rich to poor. c. different individuals have different preferences for the same goods. d. the marginal rate of substitution is the same for both indifference curves.
An increase in real net exports leads to an increase in real GDP. Further
A. real consumption spending and real saving increase. B. real consumption spending increases while real investment spending decreases. C. real consumption spending increases but real saving does not change. D. real government spending decreases to offset the increase in real net exports.