What are the arguments against the redistribution of income?
What will be an ideal response?
Many people believe that markets are fair. Labor and capital are paid in accordance with the value of what they produce. Redistributing income violates the right to contract and the right to property (what an individual earns). Taxation and transfer programs interfere with the basic incentives of the market. Individuals have less incentive to work, save, and invest. Last, it is unclear whether the redistribution of income programs in the United States have done a good job of keeping people out of poverty.
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If Big Sails and Jet Sails are two competing sailboat firms and Big Sails wants to make a threat to Jet Sails more credible, they can do all of the following except which one?
A) take action to lower the firm's costs B) make Jet Sails aware of Big Sails' plans C) take action to increase the firm's capacity D) keep Jet Sails in the dark regarding Big Sails' plans
A price floor set above the equilibrium price causes a surplus in the market
a. True b. False Indicate whether the statement is true or false
If more and more states legalize casino gambling in the future, what will likely happen to the market for casino gambling in the states where it is currently legal?
A. The demand curve will shift to the right. B. The supply curve will shift to the left. C. The supply curve will shift to the right. D. The demand curve will shift to the left.
Because the players are prevented from cooperating, each player in a prisoners' dilemma game has a dominant strategy that leaves ________ than if they could cooperate.
A. them both better off B. the first player to confess worse off and the other player better off C. them both worse off D. the first player to confess better off and the other player worse off