If complete equality of income were legislated, which of the following would economics predict?
a. People would become richer.
b. Society would gain utility from the extra goods produced.
c. Individuals would willingly work longer hours and thus produce more.
d. The incentive to produce and perform efficiently would be virtually eliminated.
D
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Explain the role the Fed, Congress, and the President play in making monetary policy
What will be an ideal response?
Four propane delivery firms have a tacit agreement to charge a service fee of $50 in addition to $5 per gallon of propane. If the firms' cost of propane increases and one of the four firms advertises that it will increase the service fee to $75 next month, this is an example of ________.
A) a preannouncement B) a precommitment C) a meet-the-competition clause D) price leadership
Refer to the diagram and list of assumptions. The elimination of gender discrimination:
(1) the labor force is comprised of 9 million men and 9 million women workers;
(2) the economy has 3 occupations, X, Y, and Z, each having identical demand curves for
labor; (3) men and women workers are homogeneous with respect to their labor-market
capabilities; (4) women are discriminated against by being excluded from occupations X and Y
and are confined to Z; and (5) aside from discrimination, the economy is competitive, and
workers seek to maximize their earnings.
A. may either increase or reduce real domestic output, depending on what happens to the
level of wages.
B. will increase real domestic output.
C. will have no effect on real domestic output.
D. will reduce real domestic output.
A two-period project has the following probabilities and cash flows:
Probability Cash flow Period 1: .25 500 .50 600 .25 700 Period 2: .30 300 .50 500 .20 700 The discount rate is 7%, and the initial investment is $1,000. How much is the expected NPV of this project?