If growing income inequality results from changes in technology that, as a whole, make society better off, this will
A) increase the size of the economic pie.
B) decrease the size of the economic pie because of the income inequality.
C) not change the size of the economic pie because the positive technology changes will be offset by the increases in income inequality.
D) result in complete income inequality as technology continues to change in the future.
A
You might also like to view...
Holding other factors constant, if Congress passes a 5% investment tax credit under which a firm receives $5 in tax refunds from the government for every $100 it spends on new capital equipment, then the real interest rate will ________ and the equilibrium quantity of national saving and investment will ________.
A. increase; decrease B. increase; increase C. decrease; increase D. increase; not change
Real GDP =________ where the price level is the ________
A) Nominal GDP × Price level; GDP deflator B) Nominal GDP ÷ Price level; GDP deflator C) Nominal GDP ÷ Price level; CPI D) Nominal GDP × Price level; CPI E) none of the above
Compared to a perfectly competitive firm, a monopolist:
a. charges a higher price. b. produces lower output. c. fails to achieve an efficient allocation of resources. d. all of these.
Environmental problems occur exclusively in capitalist economies.
Answer the following statement true (T) or false (F)