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.
Answer: A
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The result of British currency policy after World War I
A) left the country with painfully high interest rates and unemployment for years. B) left the country well positioned for the roaring twenties that followed. C) gave the country a tremendous advantage when the Smoot-Hawley Act was passed in the U.S. D) left the country at a tremendous disadvantage when the Smoot-Hawley Act was passed in the U.S.
In which of the following examples is excess burden not present?
a. Harriet decides to give up her Saturday hours at her law office after income tax rates rise. b. Rudolf still smokes three packs a day even after the excise tax on cigarettes rose 10 cents a pack. c. Wilma reduced the automatic payroll deduction to her savings account after the tax on interest was imposed. d. Harper decided to take a vacation in Bermuda rather than invest in stocks after the tax rate on capital gains was increased.
Which statement is true?
A. There are over 50 million Americans living below the poverty line. B. The poverty line is raised each year. C. Nearly all the nation's poor people live in the South. D. Poverty is a greater problem today than at any time since the end of World War II.
Which of the following is the best example of a public good?
What will be an ideal response?