Which of the following is NOT correct regarding the theories of income distribution?
A) Dealing with how income ought to be distributed is a normative issue.
B) The productivity standard for the distribution of income is stated "to each according to what they produce."
C) The egalitarian principle of income distribution is "to each exactly the same."
D) Dealing with how income should be distributed is a positive economic issue.
D
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Saccharin and aspartame are both low-calorie substitutes for sugar. If saccharin is found to cause cancer,
a. the price of aspartame will increase b. the price of sugar will decrease c. the price of saccharin will increase d. the demand curves for aspartame and sugar will shift leftward e. aspartame and sugar will be complements
If the MRP of the 13th worker hired is $40 and the MLC of that worker is $34, the firm
a. lost money by hiring that worker b. cannot hire that worker unless more capital is added to production, in which case the firm will profit if the cost of the worker and capital is less than the revenue theworker generates c. profited only if price of the good increased d. must have lost money on the 12 workers it hired prior to hiring this 13th worker e. profited by hiring that worker
In the circular-flow diagram, which of the following items represents a payment for a factor of production?
a. interest b. capital c. spending by households on goods d. spending by households on services
Suppose that a firm operating in perfectly competitive market sells 50 units of output. Its total revenues from the sale are $500 . Which of the following statements is correct? (i) Marginal revenue equals $5. (ii) Average revenue equals $10. (iii) Price equals $15
a. (i) only b. (ii) only c. (i) and (ii) only d. (i), (ii), and (iii)