Disposable personal income:
a. includes personal income taxes.
b. excludes personal income taxes.
c. excludes transfer payments.
d. is income spent for personal items such as homes and cars.
b
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A valid argument against redistributing income to achieve complete equality is that
a. income equality would destroy the social cohesiveness that exists among different income groupings. b. this would eliminate the monetary incentives to work and produce. c. the cost of obtaining the equality would be so deflationary as to promote economic instability. d. income equality would imply class segregation based on factors such as sex or race since income would be constant.
What is the largest possible loss that is consistent with a firm producing in a perfectly competitive market in long-run competitive equilibrium?
A. an amount equal to price minus average variable cost B. an amount equal to total variable C. zero D. an amount equal to total fixed cost
Explain why a perfectly competitive firm has no incentive to charge a higher or lower price than the market price.
What will be an ideal response?
If a union sets the wage rate to maximize the total wage receipts of its members, the marginal revenue would be
A) zero. B) negative. C) positive, but greater than 1. D) positive, but less than 1.