Economic profits and losses:
A. are both considered by economists to be a part of production costs.
B. are essential to the reallocation of resources from less desired to more desired goods.
C. have no influence on the composition of domestic output.
D. equalize the distribution of income in the long run.
Answer: B
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The table above shows the distribution of income in Swacko. The government of Swacko imposes a 20 percent tax on people with the highest 40 percent of income
The government then distributes 40 percent of the tax collected to the lowest 20 percent and 30 percent to the second 20 percent and the middle 20 percent. After the redistribution, the Lorenz curve for income ________. A) is equal to the line of equality B) equals the Lorenz curve for wealth C) is closer to the line of equality D) is above the line of equality
Among potential stores of value, money
A) offers the highest rate of return. B) increases in value during periods of inflation. C) provides more services than the other assets. D) has the advantage of being the most liquid asset.
What is the Heckscher-Ohlin theorem? Using the case studies in the chapter on U.S. trade with China describe the theory and the resulting trade patterns that would support it
What will be an ideal response?
When the price level falls, the total quantities of goods and services demanded _______ and the AD curve ________
a. decreases; remains unchanged b. remains unchanged; shifts to the right c. increases; remains unchanged d. increases; shifts to the right e. decreases; shifts to the left