The distribution of income in a market economy is determined by
a. the level of employment and prices of the factors of production.
b. the prices of factors of production.
c. largely unknown forces which economists seek to discover.
d. decisions of government offices related to distribution.
a
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Overall, government intervention in the financial system ________
A) is both essential and imperfect B) prevents adequate market solutions to market problems C) is continually improving and expanding D) is incompatible with an efficient allocation of resources
When savings ratios in the United States are above 5 percent, the economy grows at a rate of less than 3 percent
Indicate whether the statement is true or false
Consider a law that limits women's access to certain "dangerous" occupations like coal mining and military combat service. Such a law would likely reduce women's wages because:
a. women would be overqualified for "non-dangerous" jobs. b. comparable worth would no longer exist between men's and women's occupations. c. women would be less likely to obtain college degrees. d. labor supply in female-intensive occupations would increase.
The theory of comparative advantage suggests that a (an):
a. country that is not competitive should import everything. b. country specialize in producing goods or services for which it has a lower opportunity cost. c. None of the answers are correct. d. industrialized country should not import.