When the government enacts policies to redistribute income,
a. the objective is to enhance efficiency and a side effect is that the allocation of resources becomes more equal.
b. the objective is to enhance efficiency and a side effect is that the allocation of resources becomes less equal.
c. the objective is to enhance equality and a side effect is that the allocation of resources becomes more efficient.
d. the objective is to enhance equality and a side effect is that the allocation of resources becomes less efficient.
d
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If the budget deficit increases then
a. saving and the interest rate rise. b. saving rises and the interest rate falls. c. saving falls and the interest rate rises. d. saving and the interest rate fall.
What are two ways to reduce pollution that require firms to pay to pollute?
a) corrective taxes and pollution permits b) corrective taxes and command-and-control policy c) pollution permits and command-and-control policy d) pollution regulations and pollution permits
When a government splits a natural monopoly vertically, it is breaking the company up:
A. along its stages of production. B. in order to maximize its profits. C. into smaller companies providing the same goods. D. in order to capture all efficiencies possible.
The aggregate demand curve will shift rightward when there is:
A. a decrease in government spending. B. a decrease in incomes abroad. C. a tax increase. D. the expectation that future consumer income will rise.