What is the stock market's role in achieving efficient use of resources?
Investors channel their money to companies expected to earn high profits. Since profits increase with efficiency, the market rewards those firms that are seen to be efficient. However, some argue that individuals overemphasize short-term growth at the expense of long-term growth and that stock prices are gambling rather than a reward to efficiency.
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Utility is:
a. easily measured, because all people derive the same utility from consumption. b. easily measured, because it is an objective concept. c. easily measured, because it is a subjective concept. d. hard to measure, because it is a subjective concept. e. hard to measure, because it is an objective concept.
The fundamental cause of monopoly is
If there were a market for pollution rights established by a public agency that determined the amount of pollution that the atmosphere or a body of water can safely absorb, and the agency sold these rights to polluters, we could expect that:
A. the price of these pollution rights would increase over time as the economy grows. B. there would be a shortage of pollution rights. C. there would be a black market for pollution rights. D. there would be a surplus of pollution rights.
In 2009, the 20 percent of families with the lowest incomes paid an effective average federal tax rate (on all federal taxes) of about ____, whereas the 20 percent of families with the highest incomes paid an effective average tax rate of about ____
A. 5.5 percent; 50 percent B. 10.3 percent; 30.9 percent C. 8.4 percent; 27.5 percent D. 1.0 percent; 23.2 percent