The essence of the trade-off between equality and efficiency is that
A. taxes and transfers reduce incentives to earn income, thus reducing GNP.
B. people are ideologically opposed to socialistic income redistribution.
C. redistribution violates the “work ethic.”
D. people are prejudiced against blacks and women.
Answer: A
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Refer to Figure 4.1. The game described in the payoff matrix has the characteristics of a(n) ________ game
A) prisoner's dilemma B) pure coordination C) battle of the sexes D) assurance
The United States' balance of payments is likely to improve when
A) there is an increase in political instability in other countries. B) the inflation rate in the United States rises relative to other countries. C) the American government increases its spending on foreign aid. D) American people want to invest more in foreign countries.
The total revenue effect of a movement along a demand curve can best be predicted using the
A. Law of demand. B. Utility-maximizing rule. C. Law of diminishing marginal utility. D. Price elasticity of demand.
As nations become? richer, average family size increases.
What will be an ideal response?