When the government redistributes income from the wealthy to the poor,
a. efficiency is improved, but equality is not.
b. both wealthy people and poor people benefit directly.
c. people work less and produce fewer goods and services.
d. the government collects more revenue in total.
c
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The United States had serious difficulties fighting inflation in
A) the 1970s. B) the 1980s. C) both the 1970s and the 1980s. D) every decade since World War II.
If a nation opens up to free trade and becomes an importer of goods, which of the following is then true?
A) The nation as a whole loses. B) Sellers gain. C) Buyers gain. D) Buyers lose.
Assume good X is produced in a monopolistically competitive market. In addition, each of the firms in the industry uses essentially the same technology. Competitors distinguish their individual products primarily through persuasive advertising
Assume that one of the firms in the market discovers a new production process that substantially reduces the average costs of production. Analyze the effects of this discovery on long-run equilibrium in the market.
The extent of money expansion will be: a. greater if banks hold on to excess reserves
b. greater if private individuals hold on to cash. c. greater if banks hold on to excess reserves but less if private individuals hold on to cash. d. less if banks hold on to excess reserves but greater if private individuals hold on to cash. e. less if banks hold on to excess reserves or private individuals hold on to cash.