Which of the following statements is correct?
a. The United States has a more equal distribution of income than other developed countries such as Japan and Germany.
b. The statement "a rising tide lifts all boats" illustrates how economic growth reduces the number of people with income levels below the poverty line.
c. The economic life cycle explains why people base spending decisions on transitory income.
d. The United States has more income inequality than developing countries, including Mexico and Brazil.
b
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Which of the following would be the least likely to increase total factor productivity?
A) private investment in research and development B) increases in human capital C) the establishment of strong property rights D) increases in the population growth rate
A competitive equilibrium fails to be a Pareto Optimum with a distorting tax because
A) the consumer's budget constraint has an additional kink. B) the firm is no longer maximizing profits. C) the government wastes its revenue. D) the consumer faces a different effective wage than the firm.
Which of the following is an example of a progressive tax?
a. The federal personal income tax b. The federal tax on gasoline c. All of the answers are correct. d. The excise tax on cigarettes
The aggregate demand curve slopes downward in part due to the:
A. positive relationship between the price level and exports. B. negative relationship between the price level and net exports. C. negative relationship between the price level and imports. D. All of these are true.