Using the government as a means of redistribution generates equity at the cost of efficiency, in part because
A) the process of redistribution uses up some of society's resources.
B) the process of redistribution creates new resources for society.
C) redistribution creates new incentives to work for both rich and poor.
D) redistribution would not take place otherwise.
A
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A decrease in demand and an increase in supply will
A. affect price in an indeterminate way and decrease the equilibrium quantity. B. decrease price and affect the equilibrium quantity in an indeterminate way. C. decrease price and increase the equilibrium quantity. D. increase price and affect the equilibrium quantity in an indeterminate way.
All of the following costs will vary depending on the geographic location of a firm's plant except which one?
A) U.S. corporate taxes B) traffic regulations involving large trucks C) wages D) land prices
If the income elasticity of demand of houses is exactly 1.40 . Due to a recession, you expect incomes to drop by 25% next year. How will consumers adjust their purchase for houses?
a. Buy 35% more houses b. Buy 35% less houses c. Buy 25% more houses d. Buy 25% less houses
A single bank is severely limited in its ability to create money because: a. the FDIC will not permit it to create money unless the Resolution Trust Corporation guarantees the loans. b. loan recipients usually take the proceeds of the loan in cash
c. the funds loaned probably will be deposited in another bank. d. recent federal legislation prohibits banks from creating money except to finance international trade.