Since the current tax system is fairly ineffective at redistributing income, some people think this indicates
A. Government failure.
B. A negative Gini coefficient.
C. Market failure.
D. A problem with externalities.
Answer: A
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Of the four effects on interest rates from an increase in the money supply, the one that works in the opposite direction of the other three is the
A) liquidity effect. B) income effect. C) price level effect. D) expected inflation effect.
What happens when the bond holder sells a bond after a price drop and before earning the full principal?
Legislation that makes it illegal to require union membership as a condition of continuing employment is the
A) National Labor Relations Act. B) Wagner Act. C) Congress of Industrial Organizations. D) collection of right-to-work laws.
Refer to the above table. For which prices is demand elastic?
A. in a range of prices between $5 and $10 B. in a range of prices below $6.50 C. in a range of prices above $6.50 D. in a range of prices above $9.00