Which of the following is most likely to occur when the government enacts policies to make the distribution of income more equal?
a. a more efficient allocation of resources
b. a distortion of incentives
c. unchanged behavior
d. All of the above are correct.
b
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The reason for calling the current exchange rate system a "managed float" is
a. it is managed by the IMF b. it is basically a misnomer because it is impossible to "manage" exchange rates c. it recognizes that there will be some intervention by central banks d. only the forces of supply and demand determine the exchange rates e. Congress passed a law declaring that the exchange rate system be legally termed "managed float"
Which of the following could decrease the supply of dollars in the foreign exchange market?
a. a higher inflation rate in foreign countries b. lower interest rates in foreign countries c. lower prices in the United States d. an appreciation of other currencies e. a depreciation of the dollar
Which of the following is not correct?
a. In a labor market, the wage adjusts to balance the supply and demand for labor. b. A profit-maximizing firm hires workers so long as the wage rate exceeds the value of the marginal product of labor. c. Any event that changes the supply or demand for labor must change the equilibrium wage. d. Any event that changes the supply or demand for labor must change the value of the marginal product.
A decrease in demand for a product, holding other things constant, will
A. increase the marginal revenue product of labor. B. not change the marginal revenue product of labor. C. decrease the marginal revenue product of labor. D. have an undetermined effect upon the marginal revenue product of labor.