How would you feel about a policy that would raise someone else's income without lowering yours? Are you any worse off?
What will be an ideal response?
If total income is fixed, it would be impossible to raise the income of some without lowering the
income of others. If income is not fixed, those who do not experience an increase in income
while others' income increases, will be worse off in a relative sense.
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Assume that the M1 multiplier is 3 and the Federal Reserve sells $100 million worth of government securities. Bank reserves will
A) rise by $100 million. B) fall by $100 million. C) fall by $300 million. D) fall by $33.33 million.
In 2017, plowback accounted for nearly ____ in corporate financing.
A. $65 billion B. $100 billion C. $1.4 trillion D. ?$2 billion
Foreign repercussions of changes in domestic imports cause the true domestic spending multiplier to be less than 1/(MPS+MPI)
a. True b. False Indicate whether the statement is true or false
A perfectly competitive firm, Paula's Pineapple Farm, is incurring a loss. In the short run it should continue to produce if ________, but in the long run, if there is no change in economic conditions, it should exit the industry.
A. price is equal to minimum ATC B. price is below minimum AVC C. price is above minimum ATC D. price is above minimum AVC