Keynesian economics includes the idea that
A. prices adjust to clear the markets.
B. economic policies are ineffective.
C. the economy is basically stable.
D. labor markets don't always clear due to wage rigidities.
Answer: D
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In the short run, the point at which diminishing marginal returns to labor begin is the point at which the marginal cost curve
A) peaks. B) bottoms out. C) is upward sloping. D) is downward sloping.
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.
Describe the idea behind the cap-and-trade program for improving environmental quality. Explain how supply and demand determine the price for pollution rights in this case
Please provide the best answer for the statement.
Vertical equity is the belief that people ______.
a. should be taxed equally regardless of income b. should be taxed based on how much they have already paid during their lifetime c. with different levels of income should be taxed differently d. should be taxed only if they derive benefits from a specific government service