What is the difference between market income and money income? Which is more equally distributed?
What will be an ideal response?
Market income is the income the household earns in the market for factors of production, for example, the household's labor income. Money income is market income plus money benefits paid by the government to the household. Money income is distributed more equally than market income.
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The figure above shows the market for college education. The efficient quantity of education is
A) 0 students. B) 4 million students. C) 6 million students. D) more than 6 million students. E) more than 4 million students and less than 6 million students.
A company finds that for the next worker hired, the worker's VMP is less than the cost of the worker. In this case, to maximize its profit the company should
A) definitely hire the worker. B) perhaps hire the worker, depending on the relationship between the company's MC and MR. C) definitely not hire the worker. D) None of the above answers is correct.
In the graph for the consumption function, the 45-degree line
A) contains only a consumption component. B) represents both planned consumption and planned investment. C) shows various combinations where planned consumption equals real disposable income. D) reflects a decreasing APC as real disposable income rises.
The purpose of the World Trade Organization (WTO) is to
A. Protect workers from foreign competition. B. Protect producers from foreign competition. C. Ensure that there are no losers as a result of free trade. D. Enforce the rules of free trade.