Economic growth measured in terms of an increase in per capita real GDP is not a good measure of the distribution of income in a nation
a. True
b. False
Indicate whether the statement is true or false
True
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If the consumer has a great deal of time to adjust to an increase in the price of gasoline, which of the following is correct?
A) Quantity demanded will be relatively sensitive to the change in price. B) The percentage change in quantity demanded will be quite small relative to the percentage change in price. C) The percentage change in price will be quite large relative to the percentage change in quantity demanded. D) Demand will tend to be unitary elastic as it is for most goods in the long run.
Suppose a tax on sellers has been imposed as shown in the graph. Once the tax is in place, the buyers experience:
A. a decrease in demand.
B. an increase in demand.
C. a decrease in quantity demanded.
D. an increase in quantity demanded.
The rational expectations school advocates the passive rule of a fixed-growth rate monetary policy because:
a. policy makers often do not have enough information to pursue an active policy b. active intervention is required only if an economy is in recession. c. a large bureaucracy can be eliminated by following the passive approach. d. people render active policy ineffective by figuring out what it's going to be and taking actions to offset it. e. they prefer to emphasize on an active fiscal policy.
What is the major argument in the case for income equality?
What will be an ideal response?