Greater income equality that is achieved through the redistribution of income is thought to:
A. Stimulate innovation and entrepreneurship
B. Promote economic efficiency in the economy
C. Increase incentives to work, save, and invest in the economy
D. Come at the opportunity cost of reduced production and income
D. Come at the opportunity cost of reduced production and income
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A situation in which a country does not take part in international trade is known as
A) autarky. B) openness neglect. C) indifference tradeoff. D) protectionist point.
If a government wants to decrease economic growth, it would use a contractionary fiscal policy that might involve
A. increasing government spending. B. increasing taxes. C. decreasing regulations. D. decreasing unemployment.
Suppose Paul borrows $4,000 for one year from his grandfather who charges Paul 7% interest. At the end of the year Paul will have to repay his grandfather:
A. $4,280 B. $4,820 C. $4,290 D. $4,350
Goods A and B are complementary goods. A decrease in price of good A has occurred. In the market for good B, this will lead to
A) an increase in price and a decrease in quantity. B) an increase in price and an increase in quantity. C) a decrease in price and a decrease in quantity. D) a decrease in price and an increase in quantity.